CGT implications of renting spare room in PPOR

Discussion in 'Accounting & Tax' started by windexoutdoor, 26th Aug, 2011.

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  1. windexoutdoor

    windexoutdoor New Member

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    1st Jul, 2015
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    Melbourne
    Hi all,

    I have just purchased a 2 bedroom townhouse in Hawthorn and will rent out the spare room.

    My understanding is that I can deduct half the expenses assuming the townhouse is equally shared. I have two questions:

    1) Can someone please advise the CGT implications this has? I am confused as to whether or not I can maintain my PPOR status and therefore be CGT exempt at sale. Can I rent it our for up to 6 years without impeding my PPOR benefits?

    2) I believe that I am eligible to rent out my spare room and claim deductions without impacting my FHOG handout. Can someone please confirm this?

    Any advice is welcomed.

    Cheers
    Wayne
     
    windexoutdoor, 26th Aug, 2011
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    I believe you would lose the CGT exemption on the portion rented out.

    You cannot claim the 6 year absence rule unless you are absent.
     
    Terry_w, 28th Aug, 2011
    #2
  3. windexoutdoor

    windexoutdoor New Member

    Joined:
    1st Jul, 2015
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    Melbourne
    Hi Terryw,

    Thanks for your reply.
     
    windexoutdoor, 28th Aug, 2011
    #3