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Taxes on a main residence whilst renting out a single room

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I am in the market to hopefully purchase a home soon and am looking at purchasing a 2 bedroom apartment.   I plan to rent out the second bedroom to a tenant for the entire duration whilst I am living there, with a long term plan to sell the property in 3 to 5 years. 

 

I understand that given it is my main residence, the property will be CGT free when I sell the property. But does having a tenant disturb this rule as it acts partially as an investment ? Additionally, when collecting rent payments is this just considered income for tax purposes ? 

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Hi @FirstHomeBuyer1

 

When you sell your home you'll need to pay CGT based on the proportion of your home that was used to produce income. Rent you receive is just income you declare on your yearly return.

 

This page on using your home to produce income will be useful to you.

 

Hope that cleared things up.

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Most helpful response

ATO Certified Response

ATO Community Support

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Hi @FirstHomeBuyer1

 

When you sell your home you'll need to pay CGT based on the proportion of your home that was used to produce income. Rent you receive is just income you declare on your yearly return.

 

This page on using your home to produce income will be useful to you.

 

Hope that cleared things up.