All Topics / Legal & Accounting / Claiming Interest on PPOR?

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  • Profile photo of roborobo
    Member
    @robo
    Join Date: 2003
    Post Count: 155

    Hi,
    Can someone tell me if i rent out my ppor can i claim the interest againts the rent, or do you pay tax on the whole of the rent less expenses. I presumed if you make $100 per week after interest and expenses you would only pay tax on $100.
    Am i right?
    thanks
    robo

    Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781

    Sounds right.

    Your rent is the income.

    You can deduct noncapital expenses such as interest on funds borrow to buy that property, repairs etc.

    Just like an IP – well as soon as you rent it is is an IP with a 6 year CGT exemption under specific circumstances.

    Cheers,

    Simon Macks
    Residential and Commercial Finance Broker
    ***NODOC @ 7.15% to 70% LVR***
    [email protected]
    0425 228 985

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Profile photo of roborobo
    Member
    @robo
    Join Date: 2003
    Post Count: 155

    Thanks Simon, that’s what i thought.
    Robo

    Profile photo of redwingredwing
    Participant
    @redwing
    Join Date: 2003
    Post Count: 2,733

    You may want toget a valuation on the PPoR as well..helps when it comes to apportioning CGT if you ever sell

    “Money is a currency, like electricity and it requires momentum to make it Effective”
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Viewing 4 posts - 1 through 4 (of 4 total)

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