All IPs and no PPOR

[Aimjoy]

Hi guys,

Scenario:
Wife & I own 2 properties - one is a PPOR and one is an IP - in joint names
She owns another one in her name only
I own another one in my name (just bought) only. Yes I know I must get a trust structure sometime soon........probably.

Question: Say we move out of PPOR and turn into an IP. Then we rent out the IP I just bought in my name to a tenant for say $320 per week and we then sublet a portion of that property for say $200 per week to live in for ourselves.....then, is the property an IP? and if so is the whole property available to be negative geared or just the portion the original tenant has?

Thanks in advance,
Aimjoy.

[Mark Laszczuk]

If you do it that way, it's going to be seen as your PPOR with the portion rented out to the tenant being liable to CGT when you sell.