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The line between renters and boarders - what should I declare and claim

Discussion in 'Accounting & Tax' started by eeho, 28th Apr, 2016.

  1. eeho

    eeho Member

    Joined:
    1st Jul, 2015
    Posts:
    5
    Location:
    Adelaide
    Hi Investor friends,

    I recently bought an apartment as my PPOR, my housemate from my previous rental accommodation has moved with me and he pays me rent. He has his own room and bathroom and we share common areas. The furniture throughout the shared areas is predominantly mine. We evenly split all utility bills.
    According to the Consumer and Business Services department this situation is classed as 'boarding and lodging' rather than a rental tenancy so no paperwork needs to be filled out (and no bond needs to be lodged).

    I'm under the impression though that the income earned from my housemate should be lodged with my tax return, and therefore I can also lodge the interest paid, depreciation etc as with any other investment, but apportioned based on the living space occupied by my housemate.

    I understand that this would mean my CGT should I sell the property would also be apportioned.

    Is this correct? Or have I completely missed the point?
     
  2. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,358
    Location:
    Sydney
    Spot on.
     
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  3. eeho

    eeho Member

    Joined:
    1st Jul, 2015
    Posts:
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    Location:
    Adelaide
    Thanks Paul, just wanted to make sure!
     
  4. Rob G

    Rob G Well-Known Member

    Joined:
    16th Oct, 2015
    Posts:
    167
    Location:
    Melbourne
    IT 2167
     
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  5. eeho

    eeho Member

    Joined:
    1st Jul, 2015
    Posts:
    5
    Location:
    Adelaide
    Thank you Rob, I was trying to find something like this!
     
  6. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,358
    Location:
    Sydney
    IT 2167 was issued more the purpose of clarifying some arrangements eg boarding house sharing, a room tenancy v's say a family member or relative paying board. Take care not to read too much into the word "board"...Para 17-19 seem to clarify. The heading says it - Non-economic.