Situation:
Currently in my PPOR of 2.5 years, as I work away and also partly live overseas I was going to convert it to an IP (just going to use the parents address as my new place of residence)
Have had my bro and his g/f living with me all financial year, I have and will continue charging non commercial rates until they're H&L package is ready in8-10months.(then ill have it rented out via a pm once they're out and keep it as an IP)
Questions:
This is what I'm going off from the Ato as far as deductions 'Generally, a deduction can be claimed for rental property expenses up to the amount of rental income received from this type of non-commercial arrangement'
which I understand but will the bills/rates/utilities still be 100% deductible ?
Also, what is enough evidence to prove I moved? ill change all the addresses on driver licence, insurances, banks etc. but is there a benchmark/point system to aim for?
Do I have to get any contract written up? or will the rental payments be evidence enough it is in fact an IP?
Will I get a full deprec refund come tax time if I get a QS out before EOFY? or will it have to be apportioned for the 11 months when I lived there too and not for the last month (June) when I move out and it is an IP. (
Anything else I should be considering, are missing or have got wrong??
(FYI loan is I/0 and rents/mortgage interest will go in/out of my offset for now (I know it lowers deductibility) however it wont be for long, setting up a LOC facility when I buy IP#2 in the next month or two)
Currently in my PPOR of 2.5 years, as I work away and also partly live overseas I was going to convert it to an IP (just going to use the parents address as my new place of residence)
Have had my bro and his g/f living with me all financial year, I have and will continue charging non commercial rates until they're H&L package is ready in8-10months.(then ill have it rented out via a pm once they're out and keep it as an IP)
Questions:
This is what I'm going off from the Ato as far as deductions 'Generally, a deduction can be claimed for rental property expenses up to the amount of rental income received from this type of non-commercial arrangement'
which I understand but will the bills/rates/utilities still be 100% deductible ?
Also, what is enough evidence to prove I moved? ill change all the addresses on driver licence, insurances, banks etc. but is there a benchmark/point system to aim for?
Do I have to get any contract written up? or will the rental payments be evidence enough it is in fact an IP?
Will I get a full deprec refund come tax time if I get a QS out before EOFY? or will it have to be apportioned for the 11 months when I lived there too and not for the last month (June) when I move out and it is an IP. (
Anything else I should be considering, are missing or have got wrong??
(FYI loan is I/0 and rents/mortgage interest will go in/out of my offset for now (I know it lowers deductibility) however it wont be for long, setting up a LOC facility when I buy IP#2 in the next month or two)