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[need help] Deductions on partially rented out PPoR

Discussion in 'Accounting, Tax & Legal' started by pudinkeren, 9th Aug, 2010.

  1. pudinkeren

    pudinkeren New Member

    Joined:
    17th May, 2008
    Posts:
    2
    Location:
    Melbourne, Vic
    Hi,

    My first post.. To introduce myself, I came to Melbourne from Indonesia about 10 years ago for study and decided to stay in the country (love this country!). I've been browsing through this great forum and found very very useful information. Excellent learning from this forum.
    Here's my situation:
    I bought a property in Dec 2008 and the property was rented out until July 2009. I and wife moved into the property in August 2009. Two cousins come and live with us since they don’t have a place to live and one is still at uni. The question is how we could claim deductions on a partially rented out PPoR. Is this legally possible? If so, what items can I claim and what sort of documents I need to get them ready. I’m planning to DIY through e-tax this year if it is not too complicated.

    Thanks in advance guys.

    Cheers,
    pudinkeren
     
    Last edited by a moderator: 9th Aug, 2010
  2. Rob G.

    Rob G. Well-Known Member

    Joined:
    6th Jun, 2007
    Posts:
    717
    Location:
    Melbourne, VIC
    Hi pudinkeren,

    Merely sharing a house on the basis of sharing expenses is not a rental arrangement.

    This is even more so when relatives live there.

    There needs to be some sort of contract on an arm's length basis for use of part of the house.

    Check out ATO Tax Ruling IT2167 for some guidance on what the ATO will look for.

    Cheers,

    Rob
     
  3. pudinkeren

    pudinkeren New Member

    Joined:
    17th May, 2008
    Posts:
    2
    Location:
    Melbourne, Vic
    Thanks for your clarification, Rob. Appreciate that.