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Duplex - live in one, rent the other out

Discussion in 'Accounting & Tax' started by thesuperman, 22nd Jul, 2015.

  1. thesuperman

    thesuperman Well-Known Member

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    If you have a duplex property (one common wall in between) on one title where you live in one & rent the other one out & have a "Rentcover Platinum" policy with EBM Insurance Brokers which cover the whole "building & contents" and a "rentcover" section, but the policy is written as one policy for 1 John St instead of 1/1 John St & 2/1 John St, how woul you break up this for tax deductions?

    I presume the whole "building & contents" won't be fully deductible because one duplex you live in.

    Eg. the policy says:

    RENTCOVER SECTION: $222
    BUILDING & CONTENTS SECTION: $1,225

    Broker Fee $51
    Total Premium $1,498
     
  2. D.T.

    D.T. Adelaide Property Manager Business Member

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    I'd just divide all costs by 2.
     
  3. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    Yes but not all issues are this simple. How do you apportion CGT costs and timing ? Loan interest ?
     
  4. thesuperman

    thesuperman Well-Known Member

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    Yeah I was thinking that, except for the "Rentcover" section as that is 100% for the rented property as that is a landlord's insurance policy covering loss of rent, etc.
     
  5. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    I think you hit nail on the head.

    Apportion one premium and deduct 100% other.