Hello All,
Am debating my next purchase, whenever that may be. As an option, I may be able to go JV with someone, who has a large deposit available, which would allow me to buy something bigger and better than otherwise. My question is, if I was to live in the property (would be a semi in inner-west Sydney) over a year or so, renovate it, and then rent it out as a normal IP...what would the tax implications etc be of this for both parties?
Assuming we go 50/50, myself at a high LVR like 95%, and the other party at a much lower LVR, if I was to "pay rent" for the time I lived in the property to the other party, are they able to claim that it is an IP for that time? We would jointly fund and do the renovations. Once it is rented out completely, I guess it just reverts to being a normal IP and each party treats income and costs on a % basis?
Cheers
Brendan
Am debating my next purchase, whenever that may be. As an option, I may be able to go JV with someone, who has a large deposit available, which would allow me to buy something bigger and better than otherwise. My question is, if I was to live in the property (would be a semi in inner-west Sydney) over a year or so, renovate it, and then rent it out as a normal IP...what would the tax implications etc be of this for both parties?
Assuming we go 50/50, myself at a high LVR like 95%, and the other party at a much lower LVR, if I was to "pay rent" for the time I lived in the property to the other party, are they able to claim that it is an IP for that time? We would jointly fund and do the renovations. Once it is rented out completely, I guess it just reverts to being a normal IP and each party treats income and costs on a % basis?
Cheers
Brendan
