Joint House Investment - Tax Advice / Options

Hi All,
I purchased a substantial property in Brisbane 4 years ago together with my brother and parents. I have lived there for 4 years and recently moved out with my partner. My brother only lives there on weekends and my parents (in their late 60s) live there full time.

We all own a 1/4 share of the property, both my brother and I have mortgages on our shares, mine is 100% of my share paying interest only.

As the property is no longer my primary residence is it classed as an investment property despite my parents living in it and not paying any rent. Can I claim this as an investment property or do I need some sort of official agreement that it is "rented" or the like ?

As I am now living elsewhere and paying rent in a different property and NOT generating a return for my investment I am looking for options or legal tax deductions for next financial year and what I may have to do to legally claim them.

If I am able to claim this as an investment can I claim the full amount of my interest payments on the loan ? even if this is totals nearly all of what I pay in tax each year ?

I appreciate any advice or ideas..

Cheers.

 

How did your mortgage your shares of the property?

each person's interest in the property is treated separately. If you are not living there then it is not your main residence, but if your parents are living there it could be their main residence. So they may sell their share exempt from CGT and you could be liable for CGT.

you might also be able to use the temporary absence rule to keep treating it as the main residence.

If you are renting your share of the property to your parents and charging them market rates then you could claim deductions for your share of the costs.

Get professional tax advice.