I am thinking about getting boarders in my house.
What is the difference I know I supply food cleaning ect is there anything else ?
Do I have to pay tax on this ?
and when I sell my house do I have to give a portion to the government ?Thanks
Yes, you have to declare income, and as such pay income tax.
Yes, the house will then be up for some capital gains tax if you should ever sell.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
I would double check this with the ATO, As I have mentioned in previous posts, I have a friend who has had international students boarding in her home for over two years and when she spoke with centrelink (she gets family tax benefits) they told her that the boarding payments were not classified as income.
I had a boarder living with me for twelve months before i had my childern and i also had a friend living with me and 'paying rent' for two years and I was never required to pay any tax on this money. this was ten -13 years ago, not sure if the rules have changed.
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