is this possible to get answer to following questions?
I aprreaciate if answer be as short as possible or just yes/no
1. I read in internet if someone have a friend lived in her home as a boarder/renter for short term is this an income or received payments was just helping with/covering food, bills and costs.
2. according to https://www.ato.gov.au/Individuals/Your-tax-return/Amend-your-tax-return/Time-limits-on-tax-return-amendments/ Individuals have 2 years to submit an amendment to their tax return. if someone has one house and lives in her house. but she has spare bedrooms and storage area to let people live in.
Is she have two years to amend tax and add rental?
3. is there any issue by delaying up to two year? is the return amount will be the same?
4. for example if rent is $120 per week but 20$ per week from rent is not the income but to cover cost for milk or coffee/tea or rice to boarders. so she needs to subtract it from the net rental income and fill 100$?
5. boarders sometimes burn pots or loose cutlery and hard to find who is done that, so no cutlery left and no one take responsibility. is buying these to replace kitchen stuff tax deductible?
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4 replies
Author: AlliATO(Community Support)Community Support 2 Oct 2023
Hi @Anhdavid234
While @Bruce4Tax has answered your questions in short responses, I feel there is more info you need to know.
Domestic arrangements are generally where you receive payments from family members for “board and lodging” making the arrangement domestic in nature. You wouldn’t declare this amount as income in your tax return and you’re not able to claim a tax deduction.
Based on what you’ve said, especially under points 4 and 5, your circumstances don’t sound like a domestic arrangement. You’re not letting out rooms to family and asking about tax deductions.
To keep things short, I recommend you have a look at our Rental property as investment or business page especially under Domestic arrangements.
If the rent or board and lodging, you’ve received is a reportable taxable income and has not been included in your prior tax returns you can lodge an amendment within 2 years. Outside of this you would need to lodge an objection with a written request asking the commissioner to treat your objection as if it has been lodged on time based on the circumstances as to why it was lodged late. You would be able to claim tax deductions.
If there are amounts payable, you may incur a short fall interest charge (SIC).
thanks for your answer. yes boarder is a friend.
are you able to provide like a yes/no answer the #4, #5
Author: CatherineATO(Community Support)Community Support 8 Oct 2023
Hey @Anhdavid234,
It sounds like a domestic arrangement. If the boarder is a friend and the amount you charge is under the market value for renting the property it is viewed as a Domenstic arrangement.
For domestic arrangments the money paid to you isn't viewed as income and you are unable to claim any deductions or expenses.
The answer to questions 3 & 4 won't be applicable in a domestic arrangement.
We're unable to provide you with personal advice so you may find it beneficial to seek the guidance of a tax professional.
