How to proof PPOR?

Discussion in 'Accounting & Tax' started by ATANG, 16th Oct, 2015.

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  1. ATANG

    ATANG Well-Known Member

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    Does anyone know how one can proof to ATO that this is an investment property and not PPOR besides saying that I receive rent from it?
     
    ATANG, 16th Oct, 2015
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  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Prove.

    Evidence from variety of sources- mainly rental statements.
     
    Terry_w, 16th Oct, 2015
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  3. Perthguy

    Perthguy Well-Known Member

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    A lease would be excellent evidence. Are you trying to prove that this place is not a PPOR and another place is? That's easy if that is what you are trying to do.

    Electricity in your name
    Water in your name
    Address on drivers licence
    Rates notice in your name
    Bank account address to your non PPOR
     
    Perthguy, 16th Oct, 2015
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  4. ATANG

    ATANG Well-Known Member

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    Oh I mean like proving if this place is rented out instead of living in it.
     
    ATANG, 16th Oct, 2015
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  5. Perthguy

    Perthguy Well-Known Member

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    Lease and rent are the best evidence. You can also keep copies of real estate advertisements showing the place for rent.
     
    Perthguy, 16th Oct, 2015
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  6. House

    House Well-Known Member

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    Have they asked you to prove it's an IP?
     
    House, 16th Oct, 2015
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  7. Phantom

    Phantom Well-Known Member

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    Aren't all rates in your name? IPs and PPOR?
     
    Phantom, 17th Oct, 2015
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  8. Travelbug

    Travelbug Well-Known Member

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    If it IS an IP then you will have rent coming in (which you then need to declare to pay tax).
    It sounds like you have a PPOR that you are trying to claim depreciation etc by saying it's an IP. Correct me if I'm wrong.
     
    Travelbug, 17th Oct, 2015
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  9. Ace in the Hole

    Ace in the Hole Well-Known Member

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    Well, bank statements showing consistent rent going into your bank account would be good evidence.
    Property management statements with the property address would be better.
     
    Ace in the Hole, 17th Oct, 2015
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  10. Perthguy

    Perthguy Well-Known Member

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    Yes. Although water usage can be in a tenants name, at least in WA.
     
    Perthguy, 17th Oct, 2015
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  11. Perthguy

    Perthguy Well-Known Member

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    I was thinking about this and I don't think you actually have to prove a place is not a PPoR. It's more the opposite. For example, I rented out my PPoR, so I had bank statements showing consistent rent but it was still my PPoR.

    PPoR is something that you choose, rather than ATO saying: that is your PPoR.
     
    Perthguy, 17th Oct, 2015
    #11
  12. Perthguy

    Perthguy Well-Known Member

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    You can choose to treat a home as a Main Residence (PPoR) or as a rental property. It is not up to the ATO to claim it is a Main Residence if it is being rented out.

    If a dwelling was not your main residence for the whole time you owned it, some special rules may entitle you to a full exemption or to extend the partial exemption you would otherwise obtain. These rules apply to land or a dwelling if:
    https://www.ato.gov.au/General/Capi...-estate/Is-the-dwelling-your-main-residence-/
     
    Perthguy, 17th Oct, 2015
    #12
  13. Phantom

    Phantom Well-Known Member

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    Oh..water rates. I thought you meant council rates. :)
     
    Phantom, 17th Oct, 2015
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  14. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    It may be necessary to prove a property as the main residence in some cases. e.g. someone claiming the 6 year rules -s118-148. You cannot be absent from a main residence until it was your main residence.
     
    Terry_w, 17th Oct, 2015
    #14
  15. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Evidence of a IP:
    - Agency agreement / advertising / vacancy / residing elsewhere / receipt of income etc.

    Evidence of home :
    - Mail, services eg water / electricity, license, electoral roll, furnishings, removalists who bring your stuff into property
    - Other: Neighbours who see you and know you

    There is no definitive checklist. A post on FB for a house warming party would be tangible evidence too.
     
    Paul@PAS, 19th Oct, 2015
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