I need to move interstate and thus need to lease out my unit. It will definitely be positive geared, but when I move interstate I will need to rent there, does anyone know if this can be factored into my tax next year? An accountant told me that everything that is a principal residence cannot be factored into tax, and investment property will be tax (if positive geared).
In my case, I will need to pay tax on the income that I received from my investment property, and also paying rent at the place that I will move to (interstate). Is that right?
yes, no & maybe. Your unit will become an ip & you will pay tax on any excess over your expenses, it may be advisable to get a depreciation schedule.
If the relocation is temporary, you may be able to claim the costs of relocation & the rent.
I remember there used to be living away from home allowances or tax concessions
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
Yes but you can also claim all costs associated with the unit. EG rates, management fees, insurance, interest etc.
Just before you move back in you can repair any problems (paint etc) and claim that against the rent. Do it in the same tax year.
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