All Topics / Help Needed! / Renting out a section of your principal place of residence

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  • Profile photo of fudge111fudge111
    Participant
    @fudge111
    Join Date: 2015
    Post Count: 20
    March 24, 2015 - 2:41 pm

    Just a quick question about renting out a room or the bottom floor of your PPoR?

    Is there a percentage amount of your mortgage interest that can become deductible for tax purposes, and if so, how is this percentage worked out?

    Can you also claim things like depreciation on a new kitchenette as well?

    Cheers fudge111

    • This topic was modified 9 years, 9 months ago by Profile photo of fudge111 fudge111.
    Profile photo of Kinnon BellKinnon Bell
    Participant
    @kinnon
    Join Date: 2014
    Post Count: 151
    March 25, 2015 - 12:40 pm

    Have a chat to your accountant but from what I understand it can be apportioned.

    Take into consideration though the wider implications such as impact on CGT exemption for your PPOR, insurances, having a boarder vs tenant as well as other things.

    Kinnon Bell | Kinetic Funding
    http://www.kineticfunding.com.au
    Email Me | Phone Me

    Mortgage & Personal Loan Broker based in Cairns and Melbourne but servicing clients Australia wide.

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010
    March 25, 2015 - 1:01 pm

    Kinnon’s on the ball, doing this can have implications on your CGT free status for your PPOR. Double edged sword.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

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