The scenario is this: Let’s say I want to move interstate for 2-3 years. I don’t want to sell and buy because a) I intend to return and b) the costs of doing so. Let’s say I can rent out my home for $300pw and want to rent interstate for $300pw. Is there any arrangement that can be made to offset one against the other or am I stuck with having to declare the rent I receive as income (and therefore lose half of it)?
Any ideas?
I imagine that during the time it’s being rented, if you’re still making mortgage payments, the interest is tax deductible, as are all other associated costs. It is after all, while rented, generating income. Of course, you may be liable for CGT the proportion of capital growth during the time it was rented….. ?
Hi,
Assuming the value of your house has gone up more in the last few years than it will in the next few years, pay to have a valuation done just prior to moving out then you will be able to claim the portion of gain prior to moving as CGT-free should you decide to sell down the track.
Yep the rent is income but as kkowalsk says it’s able to be offset against all borrowing and rates/body corp costs, depreciation if you’re interested (remember this is deferring tax, not eliminating it) plus maintenance done AFTER tenants move in.
Good luck!
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Mel
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