Hi all,
Any help would be much appreciated. I have just bought my first house (25th Sept 09) and will get 21K FHOG + Stamp Duty Concession as the townhouse was brand new.
1. Can I put a tenant in?
2. If tenant's rent was say 50% of mortgage repayments, could I claim 50% of the interest paid?
3. Can I claim depreciation now in full or in part?
4. Would there be any Capital Gains implications?I guess I'm asking can you have part investment AND part Principle place of residence? Thanks in advance. Great site.
Dane1. yes, but check with the OSR in your state as you may lose your FHOG. It may be ok if you remain there too.
2. Doesn't work like that. If the tenant was renting half of the house you could claim half of the interest (not whole repayment) and other costs
3. If rented you could claim depreciation
4. yes. If you rented out half you would probably lose the CGT exemption on half of it. The little you save now may end up costing a lot in the future.It might be better to put in a 'boarder' who doesn't pay rent, but pays a fee for expenses (fine line) and not declare it. you may not save any tax, but will not have to worry about paying CGT later.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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