Renting out PPOR

From: Lucinda Hudson


I will be going travelling for 6 months next year and intend to rent out my PPOR.

The current loan has been reduced from 145 k to 85 k and I estimate it will be about 70 k when I go. From previous postings I note that I should be able to clain interest on 70 k which I assume I will have to calculate manually.

Does anyone know whether I need to do anything else to ensure that expenses can are considered as tax deductable by the ATO as the original intention when purchasing the property was not as an investment.

Thanks
 
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Sim

Administrator
Reply: 1
From: Sim' Hampel


Make sure you clearly document the date the property became available for rent and the date that it was no longer available for rent... as you will need to apportion most expenses for the time you were away since it will be less than a full financial year.

If you are charging less than market rent, then you will also need to get advice on how much you can claim, the calculations get a little tricky in this case.

Just keep records of absolutely everything... keep a diary and write notes in it if you have to... and let your accountant figure it out - they'll love you for it.

 
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