Tax issue RENT

D

deco87

Registered User
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434
Hi
I wondered if I rented my house out to allow me to rent one in a town I would like to live in after a separation ,what are the tax implications.
This house is presently the family home.
I will have to use basically all the savings I have and a gratuity from work when I retire to give to my ex.
Will be on pension then ( public service) but working..( hopefully)
There is one child who will live with me after.
I cannot afford to buy anything in the place I want to live so will have to rent to allow child to travel to college in city.
Is there any way to write off some of the tax in these circumstances.
I would be a reluctant landlord but hoping with savings in the future to buy at some stage but I am mid 50s...so it would be a bit down the road if at all.
Thks
D.
 
May I suggest that you do a search on the site for your topic, tax on rental income is very well explained, expect to pay over 50% of your income from renting the family home, if there is a capital gain in value of the property from the date you rent to the date you sell then you will have capital gains to pay on that as well, family homes are exempt from CGT at the moment, you will be changing that to an investment property by renting it.

There is no way to write off the taxes in the circumstances you outline that I am aware of.
 
If it's possible to stay where you are and rent out a room assuming it's your primary residence and get up to 14k tax free .Would that be an option for you?
 
OK Thks. So when separated if I'm on higher tax rate and rent for 1000 a month ....I would get 500 into my hand basically.
The house insurance etc maintenance would have some relief is that roughly correct
 
I believe so but if you kept your house and rented a room and could get 500 a month you would get 500 in your hand. If you rented two rooms you would get 1000 and have 1000 in your hand. All legit
 
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