Hi, I'm so new to this, please help!
I have purchased my 1st house (PPOR) 4 months ago, and speaking with an accountant he mentioned that I could claim up to 50% of interest, reno's etc as IP deductions on my Tax if my boyfriend moves in with me.
I've read the ATO Rental Properties Guide but I'm still not sure, he said that I could never sell the house as I would lose due to CGT. I realise that I would need to claim the rent he pays me as an income, and I never want to sell the house (always purchase and never sell). The way I see it, I'm not paying any extra money but I can claim up to half of the expenses as long as I never sell? Is this true – what are the implications of this? Thanks.
interesting, I just don't know, I wouldn't have thought so.
There may be an issue if you do that and you got the fist home owners grant ?
I have done a little bit research…what i thought is if you do what your accountant said…chances are you can keep your 1st home grant but you might need to pay back half of the stamp duty you been exempted since now you are tuning half ur 1st home to an investment…that could be few thousand, depends on the value of ur property…
you can still sell ur preperty later,,,just you need to pay CGT
My understanding is that if you are living together, one partner can not charge the other rent, because you would be living together in a de facto relationship. However I can't find anything that backs this up on the 'needle in a haystack' ATO website.
Dan42 wrote:My understanding is that if you are living together, one partner can not charge the other rent, because you would be living together in a de facto relationship. However I can't find anything that backs this up on the 'needle in a haystack' ATO website.Thanks so much for all your help, it doesn't seem worth all the hassle, might wait till I purchase my first IP!
I bought my first PPoR with FHOG and my boyfriend moved in there with me. His step-dad was my accountant at the time, and advised on all other sorts of property issues and talked about converting it to IP when I moved out and the tax issues involved. He never once said anything about claiming 50%.
I would be extremely surprised if this was allowed under ATO law. I don't understand how a property could be both PPoR AND IP. I thought it was one or the other.
I wonder what they say about people who take in lodgers into spare rooms… But the fact he is your boyfriend and not a normal lodger, well, just don't go down the path of trying to cover up the truth – you never know when it may come back and bite!
Thanks for that, I have contacted the ATO about it and they've listed the thing's I can claim for if I had someone board/lodge with me. You can claim a percentage of interest, rates etc. based on the percentage of the house for their sole use. I will convert my PPOR to an IP in a few years, I took out a split loan 50% P&I and 50% IO, so I don't think I need to go through the hassles of having boarders in the meantime.
that's interesting to hear, thanks for telling.
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