Dual occupancy - splitting costs? - PropertyInvesting.com

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Hmoody
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@hmoody
Join Date: 2013
Post Count: 5
January 30, 2013 - 10:33 am
Hi guys, I'm sure it's been asked before but Im just looking for some information regarding dual occupancy residences.
The one I'm looking at consists of a 3 bdr and a detached studio (same title)
It's pretty simple working out the expenses and what is or isn't claimable when they are both being rented out however what if I live in the studio while renting out the 3 bdr.
Rates per annum are $1432
If I'm living in the studio obviously that whole rate can't be claimed as an expense. Likewise with interest incurred or any other expense.
My question is how would I calculate the portion of an expense? Is it based on bedrooms, squares, land size?
Cheers
Hmoody
RPI
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@rpi
Join Date: 2012
Post Count: 308
January 30, 2013 - 10:41 am
Hi HM
Welcome to the forum
1st question, what council area is the property in?
QLD is having issues at the moment, Brisbane huge ones with this.
D
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Hmoody
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@hmoody
Join Date: 2013
Post Count: 5
January 30, 2013 - 10:43 am
Hi, it's in NSW – what issues is QLD having?
Hmoody
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@hmoody
Join Date: 2013
Post Count: 5
February 5, 2013 - 10:23 am
Any ideas anyone?
RPI
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@rpi
Join Date: 2012
Post Count: 308
February 5, 2013 - 10:46 am
Hi
You can't rent out granny flats, studios etc unless they are approved as a multi-unit dwelling. Hard and expensive today. Brisbane city council is having an enormous crackdown on it.
D
RPI | Certus Legal Group / PRO Town Planners
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Hmoody
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@hmoody
Join Date: 2013
Post Count: 5
February 5, 2013 - 10:56 am
I daresay these are approved as a multi-unit dwellings – they are indivdually numbered (13a and 13b) however on the same title.
RPI
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@rpi
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Post Count: 308
February 5, 2013 - 11:03 am
Hi HM
I am a tax lawyer rather than an accountant and this is more an accounting question but will have a crack since no one else is.
It is probably your justification for the chosen method that is more important than the method itself.
You could split bedrooms
You could split water & sewarage via bathrooms
You could split rates according to land size if it is being charged on that, if a higher rating applies because of the studio then maybe it is split according to one of the ways above.
regards
D
RPI | Certus Legal Group / PRO Town Planners
http://www.certuslegal.com.au
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Property Lawyer & Town Planner
Hmoody
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@hmoody
Join Date: 2013
Post Count: 5
February 5, 2013 - 11:18 am
Interesting, thanks a lot for your input.