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How to proof PPOR?

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

  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?
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Prove.

    Evidence from variety of sources- mainly rental statements.
     
  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
     
  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.
     
  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.
     
  6. House

    House Well-Known Member Premium Member

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    Have they asked you to prove it's an IP?
     
  7. York

    York Finance Broker Business Member

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    Aren't all rates in your name? IPs and PPOR?
     
  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.
     
  9. Ace in the Hole

    Ace in the Hole Well-Known Member Premium 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.
     
  10. Perthguy

    Perthguy Well-Known Member

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    Yes. Although water usage can be in a tenants name, at least in WA.
     
  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.
     
  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-/
     
  13. York

    York Finance Broker Business Member

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    Oh..water rates. I thought you meant council rates. :)
     
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  14. Terry_w

    Terry_w Solicitor, Finance Broker, CTA 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.
     
  15. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business 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.