I personally own an investment property which is currently rented out. If I move to live in the property, can I continue to claim property expenses as tax deduction on the basis that I pay myself market rent at commercial rate which are to be reported as assessable income in my tax return? Thank you.
Hi @Alice_Lu,
This doesn't sound like it would be acceptable as you'd be claiming tax deductions on a residence you're personally living in. The expenses would be seen as personal use, as such they're not deductible. Living in your own home would usually be regarded as your main residence, not a rental property, even if it's been used to produce assessable income. You can't claim deductions on main residences.
You can look at what you can't claim under interest expenses as one example.
In relation to arms length and what's acceptable, we'd recommend contacting our tailored technical area for further guidance on this.
No, you can't rent off yourself.
Hi @Alice_Lu,
This doesn't sound like it would be acceptable as you'd be claiming tax deductions on a residence you're personally living in. The expenses would be seen as personal use, as such they're not deductible. Living in your own home would usually be regarded as your main residence, not a rental property, even if it's been used to produce assessable income. You can't claim deductions on main residences.
You can look at what you can't claim under interest expenses as one example.
In relation to arms length and what's acceptable, we'd recommend contacting our tailored technical area for further guidance on this.
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