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28-07-2001, 01:04 PM
<font face="verdana, arial, helvetica" size="1" ><b>From:</b> Mike .</font>


Renting part of principal residence
From: Adam Benbrook
Date: 12/20/99
Time: 5:43:28 PM

Can anyway confirm this for me :-

I think when renting a room of my principal residence, I can claim all cash and non-cash deductions for the property on a "shared area" basis. e.g. purchase costs, depreciation, rates, etc. That is, tenant uses 40% of house, therefore I claim 40% of costs as deductions.


Second question:- Does the above still apply where I've owned the property for only 3 months, since I paid Stamp Duty at a reduced rate, because it is my principal residence?

Any information appreciated.

Merry Christmas Adam

WebBoard
28-07-2001, 01:05 PM
<font face="verdana, arial, helvetica" size="1" ><b>Reply:</b> 1 </font>
<font face="verdana, arial, helvetica" size="1" ><b>From:</b> Mike .</font>


Claiming deductions for principal residence
From: GF
Date: 12/23/99
Time: 9:38:43 AM

One needs to be careful with deductions for principal residence partly rented - claiming part of mortgage costs has historically meant incurring capital gains on the property. You may care to check the current rules on this aspect before jumping in! Regards GF