Does anyone have any experience with negative gearing a share house? That is, renting out a couple of rooms in a house that you own and then claiming a portion of the interest on the loan plus the other expenses as tax deductions (while declaring the rental income as well)?
Is this strategy above board as far as the ATO is concerned? Are there any gotchas I need to be aware of?
Cheers
Hi Evenflow,
Such arrangements are recognised by the ATO. I recommend a look at the ATO website ‘Guide To Rental Properties’
Apportioning expenses such as rates, insurance, taxes, repairs, interest etc is done on a propertional basis with proportion being determined by the amount of floor space typically accessible by the boarders.
I would recommend a chat with an accountant to fine tune the detail to ensure your definition of shared rooms is the same as the ATOs.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
