What can I claim??

[Wealth Creator]

Hi guys,
I have another question for you all.
In August 2004 I bought my PPOR. During this time I have had family friends stay with me and pay rent(cash).
The house is 4 bedrooms of which I occupied 1 and my family friends occupied the other 3. This was my first property purchase and upon buying the house I received a letter from the government stating that I had to live in the house for a minimum of 6 months within the first 12 months of purchase because I received the FHOG etc.
Now, the minimum of 6 months in the house is not a problem as I lived in the property from Aug 2004 until the end of March 2005 (7 months). However the family friends who were with me for 5 of those 7 months are still in the house and fully renting out the entire house now (still paying cash).
I realise tax is a complex subject and I will need to see my accountant for professional advice etc. is there somebody that could give me a quick run down on what I can claim in this situation as I am a little lost when it comes to the subject.

Thanks heaps guys.......

 

[pulse]

Be careful with what you claim. Don't even try to claim anything in the first 6 months. You need documentation of the lease and need to declare it as income if you want to claim any expenses such as interest/repairs. Since they paid cash you could (illegally) not declare it as income and now do a formal lease and declare the income and this would be when it becomes an investment property and hence tax deductible.

Cheers
Pulse

 

[skater]

Hi guys,
I have another question for you all.
In August 2004 I bought my PPOR. During this time I have had family friends stay with me and pay rent(cash).
The house is 4 bedrooms of which I occupied 1 and my family friends occupied the other 3. This was my first property purchase and upon buying the house I received a letter from the government stating that I had to live in the house for a minimum of 6 months within the first 12 months of purchase because I received the FHOG etc.
Now, the minimum of 6 months in the house is not a problem as I lived in the property from Aug 2004 until the end of March 2005 (7 months). However the family friends who were with me for 5 of those 7 months are still in the house and fully renting out the entire house now (still paying cash).
I realise tax is a complex subject and I will need to see my accountant for professional advice etc. is there somebody that could give me a quick run down on what I can claim in this situation as I am a little lost when it comes to the subject.

Thanks heaps guys.......

Gees that's a hard one. I'd go straight to the accountant with that or it could get messy.