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Good point, and thanks for the details, much appreciated.

True, it's just hard with two polar opinions. As TerryW says, I should claim the income - but then this would affect CGT and could also affect Transfer Duty Exemption if my understanding of "exclusive possession" and "lease" is incorrect. As per my other thread, it seems it would also affect...

Thanks. Just covering my behind. I tend to overanalyse things.

Quote: Originally Posted by jaycee What is the defintion of a " lodger " ? "A Lodger is a person who stays at another person’s place and pays rent but is generally not supplied meals. Lodgers are a special group of home dwellers in terms of the law. Unlike most who rent, they are not...

Hi all, Same house as my other thread (http://www.somersoft.com/forums/showthread.php?p=802320), but is a separate issue so I thought I would start a new thread. I was wondering how the 6 year rule applies when dealing with a house that has been used for a lodger (where the income and...

Okay good news, I spoke to the OSR (finally got through) - and a lodger is okay as long as there is no exclusive possession. I suppose I should then claim income and deductions and accept the CGT loss. Alternatively, can this income not be declared as a "private and domestic" matter...

Exactly, one of two has to be dodgy to do it - therefore I will wait until the 12 months has passed for transfer duty exemption.

So are we just ignoring Section 19, above, and going by 18 instead?

As quoted previously - http://law.ato.gov.au/atolaw/view.htm?docid=ITR/IT2167/NAT/ATO/00001 : I understand that (18) is easy to do, but (19) says you cannot "dress it up" to look like (18). Perhaps I'm over-cautious due to this being my first house, but if, for example, the lodger caused...

This is why I'm asking about a lodger - they do not have exclusive possession. As far as I understand, they also do not have a lease, only a license. Mortgage broker spoke to solicitor and said: It seems that if I declare the income (which by all rights I think I should) then I would be...

Sorry to bump my own thread... I have sought advice on this from a lawyer and mortgage broker... lawyer says it would, mortgage broker says it wouldn't. I also called the OSR, and the girl on the phone said it would trigger reassessment. She wanted to put me through to an assessor, but...

Okay, I agree with that. Any income would be assessable. Does having assessable income from a property trigger a reassessment of the Transfer Duty Concession? As far as I can tell (Duties Act, Section 153) it does not.

Thanks, this clarifies the ruling a lot. "Also, you ignore any use of the * dwelling for the * purpose of producing assessable income during any period that you treat it as your main residence under section 118-147 (about absences) to the extent that any part of the old dwelling mentioned in...

So Paragraph 19 says I MUST declare the income from the lodger - this conflicts with Propertunity's response. If I'm going to do that, I may as well offset with expenses too. If I do that, am I forgoing CGT exemption, and possibly triggering a reassessment of my Transfer Duty Exemption...

"...you may choose to continue to treat is as your main residence." I treat my current house as my main residence. Why can I not therefore take a tenant and be CGT exempt? People who leave their main residence but treat it as their main residence can.

Also, a question for Propertunity - Point 18 on that link, where is the line drawn? If I were asking $200/week, plus food, electricity etc... Point 18 says I need not claim the "plus food, electricity etc.", but what of the $200?

Hmm, I think my confusion comes from this: The 6 year rule allows you to keep a property as your PPoR when you are not there. Then when you sell, you claim CGT exemption due to it being your PPoR... My confusion is here: 6 year rule grants PPoR which in turn grants full CGT exemption (is this...

To Terryw - for the Transfer Duty Exemption I need a lodger not a tenant on the basis of "exclusive possession". If I can, I want to do this completely above-board. From the Duties Act, I know I can take a lodger as they do not have exclusive possession. Once I do that, I want to be able to rent...

Thanks - I had read that thread but it was mainly the CGT implications that had me worried. I completely agree with you that I'm not running a business - in fact I could easily use the lodger for negative gearing but I'd rather keep it easy and CGT free. I just need a lodger to share the cost...

WRT (3) - If the lodger only uses, say, 50% of the floor space of the house, does that 5% in your example become 2.5%? Or is CGT on "income-producing" based on time instead?