My dad and his digs

Hey guys,

Just trying to help my dad out with some numbers.

My dad and I went halves in an apartment around ten years ago

Purchase price including stamps etc $360,000. He bought his half outright and I got a loan for $180,000

I'm selling my half to him at an agreed value of $530,00 + he is paying $10,000 stamp duty

He is getting a loan for $275,000 to purchase @ 4.69% or $245/week

The unit is currently rented out at $475/week

Other expenses include:
Strata $3200/year
Water $1000/year
Rates $$1400/year

Now he was wondering if he moves into the unit in a few months and rents out the other room what can he claim? If anything at all?

Can he claim the $275,000 loan or just half of it? Or none of it. Same is with the other expenses. He loves the location and would love to live there.

Thank you for any responses.
 
If he is living in half and renting out half he probably could claim half of the expenses including interest on loans used to aquire the property.

But the property will be subject to CGT if he does this
 
If he is living in half and renting out half he probably could claim half of the expenses including interest on loans used to aquire the property.

But the property will be subject to CGT if he does this

While he resides there and rents out the other room its likely he can claim 50% of all ownership (rates, interest, DEPN, Cap Allowances, new borrowing costs (?) as well as 50% of occupancy costs eg elec, water etc.

Run the numbers first.

CGT on 50% for that period of time may also impact. It would be based on say 6 months out of say 10 years and is pro-rata of the whole profit if an when sold.
 
Back
Top