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Haha who said accountants dont have a sense of humour:p

Dave yes yours was interesting and you were entitled to the exemption. I think in this case the friend isnt entitled to an exemption.

Ato data matching is very good. Seen it work first hand. This one is hard to detect during the rental phase as agents arent required to report data to the ato but easy to detect on sale. property sold and data comes in from land titles office showing a property sold. Data also coming in...