Hi guys,
I need some help in regards to whether I need to declare tax on boarders. I have been told by one accountant that if I live at a house which I am boarding the rooms to students etc, I do not need to declare it on tax as it is not tax deductible. Another accountant told me that I have to declare it and it is tax deductible.
Could anyone shed some light on this? Also, by living at the address and if I do not need to declare tax on my rental income, could I still claim tax on investment expenses i.e. furniture etc?
Thanks,
Donnie
If they are paying anymore than their share of food and ulities then it is rent and declarable. You will also partially lose the CGT free exemption.
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
Thanks Terry
If you are in New Zealand, there is no tax if the boarders pay less than $247 per week for the first 2 boarders and $202 each for 3-4 boarders. This is the standard cost method. If there are 5 or more boarders then you have to use the actual cost method, and it becomes a pretty involved calculation.
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