What are the key tax implication in regards to:
a) GST - do I have to register for GST and Pay GST is under 75K turnover a year.
b) Are all things specifically bought to provide that service tax deductible besides normal visit items like, fridge, new linen and new bed. This is a new house with an extra bedroom to fitted out for this purpose.
We will be living in house as normal.
I suggest this would be regarded as residential rental income (short stay) which is input taxed (GST exempt). Whole of property expenses such as rates, insurance and loan interest need to be apportioned according to the floor area of rented portion as a percentage of whole dwelling. If there are common use areas then this makes the percentage claim more complex. The expenses would also need to be apportioned for the days the room was available for rent. (and not available for rent)
Items purchased for the rented portion can be claimed however those costing over a certain amount would need to be depreciated.
Keep all records of expenses (receipts and invoices).
It can be complex so if you are unsure how to claim expenses and depreciating items then seek professional advice to prepare and lodge tax returns
I suggest this would be regarded as residential rental income (short stay) which is input taxed (GST exempt). Whole of property expenses such as rates, insurance and loan interest need to be apportioned according to the floor area of rented portion as a percentage of whole dwelling. If there are common use areas then this makes the percentage claim more complex. The expenses would also need to be apportioned for the days the room was available for rent. (and not available for rent)
Items purchased for the rented portion can be claimed however those costing over a certain amount would need to be depreciated.
Keep all records of expenses (receipts and invoices).
It can be complex so if you are unsure how to claim expenses and depreciating items then seek professional advice to prepare and lodge tax returns
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