HI guys,
My investment propert has just gone vacant.
I rent it out myself by listing it on gumtree.
While it is vacant can I negative gear the property or can you only match expenses and interest expenses against income for periods it is generating rent?
Can you claim it as earning $0 income for the period it is vacant or do you have to use a market rent eventhough it is vacant?
I am trying so hard to let the place out but because it is christmas I am having no luck.
Also what if I let a friend stay in there at below market rent?
Hi PB sorry to hear that the property has become vacant especially this time of year.
No as long as the property is being advertised for rent you can still claim all of the expenses and these are only offset by the actual rent you receive. If this is nil during the period then nil it is.
Have you thought about getting a Property Manager to source a Tenant and then you managing it from there.
Do you lodge each year a PAYG Tax variation so that you get your Tax adjustment reflected in your fortnightly pay cycle.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Thanks for help. I have one other question.
i have put reconnected the gas electricity and water in my name as i need to show prospective tenants through and clean the place up so i need the utilities connected. The postal address for the bills is different to the ip's address. Because ive put the bills in my name is this an argument for the ato to say i was living there or is it still kosher. I am genuinely not living there
Any expenses incurred as part of the investment will be deductible and these include power etc.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Like Richard said – you can still claim all of the costs.
Is there a reason why you've restricted your search only to gumtree ads? You may need to broaden your advertising to capture a larger market.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Your expenses will still be deductible while you are seeking a tenant.
Avoid renting to a friend at 'mates rates' – there is a reasonable expectation held by the ATO that any rental arrangements are at 'normal market' conditions.
As Jamie said – why not get a property manager on the job too?
Costs are claimable from when the property is advertised for rent. Keep a record of the gumtree ad…
From the ATO website:
"You can claim expenses relating to your rental property but only for the period your property was rented or available for rent, for example, advertised for rent"
http://www.ato.gov.au/content/00313893.htm
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
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