Hi guys. Im in a position to relocate with company paying for my rent. My PPOR is currently priced at around 240,000 the rent to be recieved (i will rent out)is between 210 -230 per week and the monthly repayments are 1207. My question is at tax time what exactly is it that i get a tax break from ;the interest payed by me or is it the difference between rent and repayment.I know i can also claim depreciation. What else?
Also if i wanted to sell after renting any ip what are the requirements lets say i moved back into property for any period of time does this then make it my ppor again therefore my capital gains tax is less or nil!!!????k
OK, there’s several questions here, I’ll answer the ones i know the answers to and leave the rest for others:
Capital Gains – is only paid on the portion of the time that the home was rented ie: if you owned it for 10 years and rented it for 4, you’d pay gains on 4/10th of the gain made. Now I think (perhpas someone else can clarify this), if you feel the majority of the gain was not duing the rented time, then you can claim the gain that related to that period as long as you can prove that to be the case ie: perhps get a valuation before starting to rent it and if you move back in then get another valuation when you stop renting it.
b) YOu cna only clain the interest part of the repayment and not the whole repayment.
c) Yes, you can claim depreciation, best to get a “Quantity Surveyors” report done prior to renting it as that will speicify the vlaue of things that can be depreciated unless you have original cost for EVERYTHING relating to the house, in whihc case you accountant may be able to do it. I’ve always foudn the quantity surveyors report the best way to go and you can claim the cost of it too.Hope this hleps a bit.
PKDepending on how old the property is & what renovatios have been done on the property, this will make a difference come tax time.
I know someone that can do the Tax Depreciation Schedules for $345Roy H.
L.R.E.A., Dip FS (FP)
Guardian Property Specialists (GPS)
http://www.gpsnetwork.com.auLei,
You will be able to retain you house as your PPOR (CGT free) for 6 years while living elsewhere, as long as you don’t elect another property as you PPOR.
Eligible claims:
-Interest
-Depreciation
-Rates
-Insurance
-Repairs and maintenance(not capital expenditure)
-Property management costs
-Anyone care to add to list?Rhys
thanks for your replies. Also does anybody know how to find out how much is owing on a property you wish to purchase or is that private information.?? Thanks again
k
One other deduction:
Property inspections!and
Don’t forget Landlords insurance.Also once you work out what your tax savings per year, then you could see you payperson and request a payday variation to pay less tax each payday!
It’s gggggggggggrest to have your rent paid for by someone else…..Imagine if you deposited the rent money u save into high yielding bank account.
hrm
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