Hi all,
I hope this is a simple question - but in my research it has become increasingly complicated...
My situation is this:
- Bought first home (a 2 bedroom appartment) 01/02/2011
- Claimed FHOG
- Claimed First Home Transfer Duty Exemption
- I have lived in the property since 28/03/2011 when the previous owners tenant moved out (allowed under Transfer Duty Exemption)
- The appartment is my PPoR
- I want to take in a lodger to help with the cost of living
I have three main questions:
1) Am I correct that having a lodger does not trigger reassessment of the Transfer Duty Exemption (Duties Act 2001, Section 153), since it is not a transfer, lease or a grant of exclusive possession?
2) How should I handle the money coming from the lodger? Is this income non-assessable (and not declare it) since it is contributing to the running of the household and not a source of income (how to justify this if so?). If not, can I declare this income and claim back a proportion of the mortgage repayments without triggering a reassessment for the Transfer Duty Exemption.
3) Depending on the answer to (2): What are the CGT implications for having a lodger? Since the home is my PPoR does the 6 year rule for PPoR CGT exemption still apply if I live in the property and have a lodger?
Very confused about the rulings and what I can/cannot legally do.
In a perfect situation I would like to keep the Transfer Duty Exemption as well as be CGT exempt when I go to sell the property.
Please help,
Thanks!
--Dan
I hope this is a simple question - but in my research it has become increasingly complicated...
My situation is this:
- Bought first home (a 2 bedroom appartment) 01/02/2011
- Claimed FHOG
- Claimed First Home Transfer Duty Exemption
- I have lived in the property since 28/03/2011 when the previous owners tenant moved out (allowed under Transfer Duty Exemption)
- The appartment is my PPoR
- I want to take in a lodger to help with the cost of living
I have three main questions:
1) Am I correct that having a lodger does not trigger reassessment of the Transfer Duty Exemption (Duties Act 2001, Section 153), since it is not a transfer, lease or a grant of exclusive possession?
2) How should I handle the money coming from the lodger? Is this income non-assessable (and not declare it) since it is contributing to the running of the household and not a source of income (how to justify this if so?). If not, can I declare this income and claim back a proportion of the mortgage repayments without triggering a reassessment for the Transfer Duty Exemption.
3) Depending on the answer to (2): What are the CGT implications for having a lodger? Since the home is my PPoR does the 6 year rule for PPoR CGT exemption still apply if I live in the property and have a lodger?
Very confused about the rulings and what I can/cannot legally do.
In a perfect situation I would like to keep the Transfer Duty Exemption as well as be CGT exempt when I go to sell the property.
Please help,
Thanks!
--Dan