Renting out a room = Rental Income!

monopoly money (2)That’s right, when you earn income from renting out a room, either by traditional means or through the sharing economy, you receive rental income.

When you receive rental income there are some expenses you can claim, but there needs to be an apportionment of the expenses between private and deductible.

The ATO have issued a fact sheet with some common examples, this is a great read if you are considering renting out a room, you’ll find it here.

Importantly, if you are considering renting out a room in your home, please contact me to discuss the impact on your taxable income and for advice on appropriate records to keep – it’s very difficult to go back and get information after the event has passed.

Preparation is key!



Leave a Reply

Your email address will not be published. Required fields are marked *