Renting out rooms of PPOR - claiming IP expenses?

[Zeddy]

If I have say a 3 bedroom house, and rent out 2 of them, can I proportion outgoings like electricity, water, etc based on number of heads.

eg Me plus two tenants - therefore 2/3 of the above bills are tax deductible?

And yes, I do intend to ask my accountant. I just want to make sure his answer matches up with the answers here.

 

[jech]

Piggybacking this

If I have 2 bedroom can I claim half IP

 

[Propertunity]

To you both, have a read of this thread:
http://www.somersoft.com/forums/showthread.php?p=589142

Zeddy bills are apportioned on floor m2 area not heads.
IMO, not worth claiming expenses and losing part of the CGT-free status of your PPOR, especially when the income from a boarder who is simply sharing in the costs of running a household, is not taxable anyway.

 

[Zeddy]

Cheers Propertunity, I've had a quick read. I'll have an in depth read later tonight.

This is changing the topic somewhat, but what happens if I later subdivide and knock down the place? Assuming I build a duplex or 2 detached houses, sell one off, and keep the other. How does the CGT impact that?

This is really starting to get into accounting territory. I need to talk to my accountant I guess.

 

[Propertunity]

Cheers Propertunity, I've had a quick read. I'll have an in depth read later tonight.

This is changing the topic somewhat, but what happens if I later subdivide and knock down the place? Assuming I build a duplex or 2 detached houses, sell one off, and keep the other. How does the CGT impact that?

There are many topics in here on the same topic. Just use the search function on the forum here or google search site:somersoft.com "whatever you are looking for in here"

This is really starting to get into accounting territory. I need to talk to my accountant I guess.

Uh-huh
Also Julia Hartman is good on that topic, see www.bantacs.com.au

 

[Zeddy]

There are many topics in here on the same topic. Just use the search function on the forum here or google search site:somersoft.com "whatever you are looking for in here"

No worries. I searched for my first query, but not the second.

I'll hit my accountant up.

 

[pennyk]

As already said, its probably better to not claim the expenses and not need to declare the income, and to keep CGT exemptions.

Cheers Propertunity, I've had a quick read. I'll have an in depth read later tonight.

This is changing the topic somewhat, but what happens if I later subdivide and knock down the place? Assuming I build a duplex or 2 detached houses, sell one off, and keep the other. How does the CGT impact that?

This is really starting to get into accounting territory. I need to talk to my accountant I guess.

Before you knock your house down, you should get a valuation done. This will show what capital gain you achieved while the house was still a PPOR, and obviously then also the capital gain achieved after that time when it was an IP