A few questions from a newby..

Hi guys, i have been a keen viewer of somersoft for a year or so now and love learning from everyone. Both me and my partner are in our mid 20's and just bought our first IP. We have a PPOR that i have owned for 4 years. We are going to move into our IP for 6 months (due to my partner qualifying for FHOG). My question is as follows- is it worth getting a depreciation schedule drawn up on my PPOR for the 6 or 7 months that we will be away or is it not worth it? Also my PPOR has a P&I loan- how does this effect calculating my tax refund in regards to how it is geared?
This all may seem simple or silly to you but i am learning as im going so please be nice :) haha.

Thanks Reno.
 
Hello,

A few issues here.

Hi guys, i have been a keen viewer of somersoft for a year or so now and love learning from everyone. Both me and my partner are in our mid 20's and just bought our first IP.

Congrats! I am jealous, I haven't settled on mine yet and have a long wait ahead.

We have a PPOR that i have owned for 4 years. We are going to move into our IP for 6 months (due to my partner qualifying for FHOG).

I am sure you have done your own research, but I am confused about how your partner is eligible for the FHOG if you live together and you already have a PPOR. Both parties to a relationship need to be eligible in order for either party to recieve it. Unless you don't already live together?

My question is as follows- is it worth getting a depreciation schedule drawn up on my PPOR for the 6 or 7 months that we will be away or is it not worth it?

From my understanding it is almost always worth getting a DS done, but I'm sure others more qualified can answer that better.

Also my PPOR has a P&I loan- how does this effect calculating my tax refund in regards to how it is geared?
This all may seem simple or silly to you but i am learning as im going so please be nice :) haha.

Thanks Reno.

Only the interest part of the P&I loan is deductible.

Good luck.
 
As an EXTREMELY rough guide, let's say 6 months of depreciation would come to $5k, at 30% tax rate you'd receive a refund for that of $1,500. The report would cost you say $5-800. Adjust figures as you see fit, and this is assuming your house isn't too old or has some relatively newer fittings. Up to you.
 
Hello,

A few issues here.



Congrats! I am jealous, I haven't settled on mine yet and have a long wait ahead.



I am sure you have done your own research, but I am confused about how your partner is eligible for the FHOG if you live together and you already have a PPOR. Both parties to a relationship need to be eligible in order for either party to recieve it. Unless you don't already live together?


From my understanding it is almost always worth getting a DS done, but I'm sure others more qualified can answer that better.



Only the interest part of the P&I loan is deductible.

Good luck.


Thanks for your help mate. We do live together however, we are not married and we are not legally defacto- so i guess you could say that in the governments eyes, we are just friends.
Once again thanks alot for your help.
 
It would be difficult to not be classed as defacto if you are living together.

In NSW see http://www.austlii.edu.au/au/legis/nsw/consol_act/pa1984298/s4.html

PROPERTY (RELATIONSHIPS) ACT 1984 - SECT 4
De facto relationships
4 De facto relationships

(1) For the purposes of this Act, a de facto relationship is a relationship between two adult persons:

(a) who live together as a couple, and

(b) who are not married to one another or related by family.

(2) In determining whether two persons are in a de facto relationship, all the circumstances of the relationship are to be taken into account, including such of the following matters as may be relevant in a particular case:

(a) the duration of the relationship,

(b) the nature and extent of common residence,

(c) whether or not a sexual relationship exists,

(d) the degree of financial dependence or interdependence, and any arrangements for financial support, between the parties,

(e) the ownership, use and acquisition of property,

(f) the degree of mutual commitment to a shared life,

(g) the care and support of children,

(h) the performance of household duties,

(i) the reputation and public aspects of the relationship.

(3) No finding in respect of any of the matters mentioned in subsection (2) (a)-(i), or in respect of any combination of them, is to be regarded as necessary for the existence of a de facto relationship, and a court determining whether such a relationship exists is entitled to have regard to such matters, and to attach such weight to any matter, as may seem appropriate to the court in the circumstances of the case.

(4) Except as provided by section 6, a reference in this Act to a party to a de facto relationship includes a reference to a person who, whether before or after the commencement of this subsection, was a party to such a relationship.
 
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