Hey Guys,
I've just bought my own place using the first home owners grant and am now living in the property.
I would like to rent out the remaining two bedrooms and am just wondering what the tax implications of this are?
Can anyone help me or point me to some good resources?
There's also a little bit of work to do on the property so i was wondering if this work would become tax deductable or some portion of it tax deductable if i'm renting rooms out?
Thanks,
Julieanne
Hi Julieanne
Your best bet is to speak with an accountant.
From my understanding (and I’m not an accountant) is that providing accommodation to boarders – who in turn provide some money to go towards utilities, etc it would be deemed a private arrangement and therefore no tax implications should arise.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Ring the ATO, they may be able to answer your question without charging you a fee.
Raydenhead wrote:Ring the ATO, they may be able to answer your question without charging you a fee.That's probably true, but they usually give the worst answers, and they wont give you the context of other options.
The ATO will simply tell you that your using your home to generate taxable income, therefore you must declare the income, claim the relevant portion of your expenses, and if/when you sell, pay the appropriate portion of capital gains tax.
As Jamie pointed out, there are other options. And, usually the capital gains tax implications hurt a -lot- more than foregoing the small income tax advantage you might get in the short term.
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