All Topics / Help Needed! / Is there something wrong here?

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  • Profile photo of gunner10gunner10
    Member
    @gunner10
    Join Date: 2004
    Post Count: 14
    February 9, 2005 - 10:11 pm

    I will try to simplify this as much as I can:

    1. I purchase first house in Feb 04

    2. I rent house until Nov 04

    3. I show property as rental investment in 03/04 tax.

    4. I move into house Nov 04 and still keep receiving rent (private arrangement).

    5. I apply for FHOG Jan 05 (no result yet)

    6. In 04/05 tax, I will show property as being a rental investment only up to Nov 04. Rent from Nov 04 to Jun 05 will be shown as extra income.

    Basically, I have got myself confused as to whether I am doing the right or wrong thing, whether it is all legal or not….I like to sleep at night. Can anyone tell me whether this is acceptable or offer some advice?

    Profile photo of calvin_thirty4calvin_thirty4
    Participant
    @calvin_thirty4
    Join Date: 2004
    Post Count: 556
    February 10, 2005 - 1:12 am

    I’m not sure you can get the FHOG AFTER buying a house, especially if you rent it out straight after buying it.

    I believe, however, that the FHOG rules mean that you need to have moved into the house withing the first twelve months. So that means you could move in on day 365 of 365 and then you must live there for at least 6 months to still be eligible for the FHOG.

    The Tax stuff you mentioned appears OK (I’m NOT an accountant – but it looks logical!).

    Like I said up top, I don’t know if you can claim the FHOG AFTER you bought a house. I thought it had to be part of the purchase process – I may be wrong. For your sake I hope I am, be a shame to miss out on it.

    About the “still receiving Rent” bit, you’d have to check with an accountant whether that is legal in regards to the FHOG! You may be asked to pay it back, IF you get it in the first place!

    Cheers

    C@34

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    February 10, 2005 - 5:18 am

    I am not an accounant either, but what you have done appears OK. I think you can apply for the FHOG after you have moved in. You should know soon anyway!

    Terryw
    Discover Home Loans
    Mortgage Broker
    North Sydney
    Click below to email me

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

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