Partial rental of PPOR and CGT

W

WebBoard

Guest
From: Terry W


Yet another PPOR/CGT question

Does anyone know if you could rent out part of your PPOR (ie 2 bedrooms) and still claim the exemption of CGT by using the 6 year rule?

Thanks in advance (esp to Dale!)

Terryw
 
Last edited by a moderator:
Reply: 1
From: Dale Gatherum-Goss


Hi Terry

Yes, you can legally avoid CGT after renting out part of your PPOR - providing that you do not do so for more than 6 years at a time.

Have fun

Dale
 
Last edited by a moderator:
Reply: 1.1
From: Mark Laszczuk


So does that mean Dale, that you can rent out the rooms, claim the interest on your tax and STILL pay no CGT? This specific scenario sounds too good to be true. I would think the ATO would accept you renting out two rooms and still not pay CGT (like you said), but would they draw the line at claiming the interest? Very interested in hearing your answer to this one.

Mark
'no hat, some cattle'
 
Last edited by a moderator:
Reply: 1.1.1
From: Jason C


Mark,
I have done just that with my current house over the past few years, at times having 3 other people living with me.
I have been able to claim all associated cost but only as a percentage ...eg. 4 bedroom house 3 boarders plus myself i was claiming 75% of ALL costs. It was a great way of purchasing my first house with the help of a few of my mates as tenants and getting the tax advantages as well.
CGT is still a bit of a mystery to me though!
Jason
 
Last edited by a moderator:
Reply: 1.1.1.1
From: Mark Laszczuk


Jason,
Yes I know about being able to claim the expenses stuff, I have a great accountant after all! I fully intend on doing the same when I buy a house, the thing I'm iffy about is whether or not you can claim the expenses AND still be exempt from CGT.

Mark
'no hat, some cattle'
 
Last edited by a moderator:
Reply: 1.1.1.1.1
From: Dale Gatherum-Goss


Hi Mark

Yes, the house is still exempt from CGT under these circumstances as it is your PPOR.

There are many such "loopholes" within both tax acts.

Have fun

Dale
 
Last edited by a moderator:
W

WebBoard

Guest
Reply: 1.1.1.1.1.1.1
From: Terry W


Thank you once again Dale.

I hope that you are right, if you are then surely you would be able to claim depreciation of furniture etc. Imagine how much extra you could claim if you say had 2 bedrooms of your 3 bedroom unit rented out. 2/3 of the value of your Television, washing machine, dryer, knives and forks, etc etc.

And then there is depreciation on the fittings, carpets, stove etc.

All this could really add up to a nice sum.

Terryw
 
Last edited by a moderator:
Top