I live in my property (this is my only property) and I want to know what seperates someone from being a tenant, a border/lodger for tax reasons? For example if some pays bond and lives with me can I still class them as a border/lodger as this is still my place of resisdence? Or can I not get a bond from a border? Thanks for your replies. Have a great day!
G'day Property Mistro!
Normally, if you are sub-letting out part of YOUR home, then your tenant is classed as a boarder and not a tenant unless, you require a fixed term tenancy of no less than 12 months. You are fully entitled to collect from a boarder a bond and have them pay so many weeks in advance. It is usually best to draft at least a basic tenancy document outlining what the boarder can and cannot do.
I hope this has been of benefit to you.
Kind regards,I think the definition of a boarder, from a tax perspective, is one that you charge only for the amount of money they use such as meals, electricity etc. If you charge over and above this then you would be making an income and would need to declare it.
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
Terryw wrote:I think the definition of a boarder, from a tax perspective, is one that you charge only for the amount of money they use such as meals, electricity etc. If you charge over and above this then you would be making an income and would need to declare it.see para 17 of TR 2167
http://law.ato.gov.au/atolaw/view.htm?docid=ITR/IT2167/NAT/ATO/00001Terryw | 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
Awesome help all, thankyou you very much!!!!
You must be logged in to reply to this topic. If you don't have an account, you can register here.
