Bought our unit in April 2008
from last 2 years we bought brand new best quality furniture in our unit
currently we want to rent out the unit immediately with fully furnished option and we want to move in to city to share with the friends at very little cost. We can move any time, once this property is rented out
we want to do our own property management, so we have listed property on our own on Real estate, domain, etc.
Currently though property is available immediately we are not getting the tenants for the advertised rental price.Question: Till we rent out our own place, can we live in this property and at the end of the financial year can we claim the tax loss from the listed date of property for rent??? Mentioning that we have listed the property for rent, but we are not able to find one
Experts please advice
Thanks in Advance
I will tell you it is not allowable in the eyes of the ATO, if they allowed this, although you are legitimate, the ATO will open up a large tax loop hole for everyone in the country. i.e. everyone could set the rent above the market price and/or turn away perspective tenants.
You may live in the property, but there is no allowable tax deduction. It becomes your PPOR.
So we need to keep the unit vacant till we find tenants and pay the rent to friends, then we can claim the loss.?
To be clear with ATO, what sought of documents we need to supply that the property is vacant and available for rent?You can claim the loss for the time it was available for rent, evidence such as realestate.com receipts and bank statements for your current lease would be evidence.
Alternatively, you may move into the unit and not claim the loss- make your repayments i/o so as not to reduce your tax deduction in future years.
Thanks a lot for the advice
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