Apportioning tax for part investment

I bought a unit which I still live in (bought with 1st home buyers grant). I bought it about 1 year ago, and 6 months ago I started renting one of the rooms in the two bedroom unit to someone else.

I basically have two questions:

1. How long do I have to have lived in the property (ie. been principle place of residence with no investment portion) without having to pay capital gains tax if I sell. 3 Months?

2. If the second bedroom is a little smaller than mine, can I claim most of my available tax deductions as 50/50 (ie. half the bedrooms in the investment property) or does it have to relate to the size of the rooms ie 40/60?

Many thanks
Nathan
 
Originally posted by ntowill
I bought a unit which I still live in (bought with 1st home buyers grant). I bought it about 1 year ago, and 6 months ago I started renting one of the rooms in the two bedroom unit to someone else.

I basically have two questions:

1. How long do I have to have lived in the property (ie. been principle place of residence with no investment portion) without having to pay capital gains tax if I sell. 3 Months?

2. If the second bedroom is a little smaller than mine, can I claim most of my available tax deductions as 50/50 (ie. half the bedrooms in the investment property) or does it have to relate to the size of the rooms ie 40/60?

Many thanks
Nathan
Hiya Nathan

If the house is your PPOR then you will not pay CGT at all. Even if it is rented whilst you live there.

Yes, the tax office formula is based on the number of rooms and not on actual size of the rooms.

Have fun

Dale
 
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