Is rent a tax deduction when you rent your own home out?

[Pooh Bear]

I have two houses one that has always been a rental property, they other I have always lived in. I am thinking of moving in with a friend and renting out a room in her house. This would only be for about 1 year, to help us both out with debt issues. I would then rent out my home for that year. I understand that I would then have to pay tax on the rental income of the newly rented house. My bank interests, rates and insurance during this time would be tax deductions but what about the cost for me paying rent elsewhere? Is that a tax deduction??

Thanks

 

[Lil Skater]

Welcome to SS Pooh Bear.

To answer your question, no you can't claim your personal rent as a tax deduction.

 

[dan c]

No, if an expense is capital, private or domestic in nature, it generally can not be a tax deduction

 

[dink]

just out of curiosity, would it be possible if they rented each others house?

 

[jrc]

No, the rent they receive is income, but the rent they pay is private.

Having said that, the amount of tax deductible interest on mortgate and depreciation benefits could make it a worthwhile activity to have a PPOR, then rent it out and rent elsewhere.