Moving back into PPOR

Viewing 4 posts - 1 through 4 (of 4 total)

wafti123
Participant
@wafti123
Join Date: 2010
Post Count: 10
March 21, 2011 - 7:59 am
Hi everyone,
I’m currently living away from my PPOR and have managed to find two tenants. For various reasons, I am considering moving back in, including the fact that tax benefits aren’t that huge (I have paid off a fair chunk of the mortgage and have about 190K loan remaining).
If I do move back in (and the tenants are ok with it) will I get taxed on that rental income? The tenants pay using direct debit so the income is completely traceable.
Thanks for your advice.
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
March 21, 2011 - 11:06 am
If you are renting the place then the rent will be classed as income. If you are just making them pay board then it is generally not classed as income. The definition of board seems to be roughly just charging for the expenses they incur by living there such as food and perhaps electricity. ie sharing the bills.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Derek
Member
@derek
Join Date: 2004
Post Count: 3,544
March 22, 2011 - 11:54 am
wafti123 wrote:
the fact that tax benefits aren't that huge
Its not all about tax benefits – if your tax benefits have declined/disappeared all it means is the property is closer to paying for itself.
Any tax savings should be considered as icing on the cake and not the cake itself.
If tax savings are an issue – go out and buy another property.
wafti123
Participant
@wafti123
Join Date: 2010
Post Count: 10
March 23, 2011 - 12:07 am
Yes, great comments guys. Thanks for that.