Dear Reader,
Is rental agreement required for claiming partial negative gearing in my Tax return for partial (2 rooms) rented property Principal place of residence
I Purchased a 3 BHK home for me to live. Its my First home and I have been living in this one for Approx an year now. I am thinking to put 2 vacant rooms/partial property for rent while myself still occupying the third room in same property. I have read that I am eligible to claim Partial negative gearing (in proportion to the area of the property rented out vs total).
I just wanted to check that do I need to possess a rental agreement with the tenants ( as a proof) for claiming partial negative gearing. I will be accepting the rental money in the form of PayId/Bank account transfers. Are these bank transfer statements good enough to proof that my property was partially rented or Rental agreement is a must to have in case ATO requests to prove on this rental arrangement.
If rental agreement is must to have, then how can I do so?
I talked to couple of real estate agents, they mentioned they dont deal with Rooms renting out.
Thanks in Anticipation!
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