Hi all,
I wondered if anyone was able to help me. I have a friend who will be moving in with me 1st July and occupying two of the four bedrooms in the house (one for himself and one for his daughter). I intended to live in this property for another two years (and turn it into an IP) whilst saving for another house so this arrangement will help me save more money in the interim. I was just wondering for tax purposes whether I would be simply applying 50% of the property outgoings (interest/depn/rates/electricity etc) against the rental income when assessing the taxable income on the property? I was also wondering what would be the situation if the rent I was charging was not quite market do I just assume in the calculation I am receiving market rent even if I am not actually receiving market rental? Are there any other items I need to consider under this type of arrangement. If anyone had any helpful pointers that would be greatly appreciated.
Runnyman
You should probably charge roughly 50%, some work it out on floor area, but 2 bedrooms out of 4 works out around 50%.
If you are charging market rent you could claim this x% of expenses, but if you are charging 80% of market rent it would be more like 80% x 50% of expenses.
Keep in mind you will lose the full CGT exemption if income earning.
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
Would they get 50% of bathrooms as well ? would they have equal access to everything else ? Garage? Storage?
Good luck
Cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
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