Hi,
We are planning to rent out our new house which we bought last year at Melbourne. It is our sole property. We will move to somewhere else close to work place. We are managing this rental property ourselves not through agents. Tenants pay cash every month.1. We have contract paper with tenants. Is that enough to prove our rental income as we'd like to claim tax deduction on it?
2. Is that 5 years rental period to avoid CGT if we wanna sell it in the future? Is this 5 years in total? Can we move back after 5 years and live in it for a certain period and then get another 5 years for rental?Really appreicate your advice and help!
Jason
Hi,
We recently rented our place to a friend to move to the city. We got a free landlords pack from Consumer Affairs which had a lease paper, condition report and a handbook you have to legally give your tenant. She pays the rent directly into our bank account. We have also taken out land lord insurance and have just arranged a depreciation report. I am keeping track of all incomingsand outgoings on a excel spreadsheet for taxation purposes.I'm not sure about your capital gains questions though sorry. Cheers
Yes, a contract should be enough to prove it is tenanted.
The 6 year rule starts again if you move back in (ie you can move out again and rent it for another 6 years).
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
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