I am pretty comfortable from the whole him ripping me off angle because I will just fire him.

It was more so that if the ATO come knocking on my door asking why I was claiming so much negative gearing then I could say the truth and have the paperwork to back it up.

Brendon

__________________
Losing is worse than death. You have to live with losing....

ATO are most unlikely to want to see a rental agreement. It's not a bad idea to have one so write it yourself based on the usual sources and keep it short to keep the housemate happy.
Same for receipts - but keep them anyway. A receipt must state- who paid, when, how much, what for, what dates are covered by a rent payment.
Memo: if your house is or was a rental it is subject to capital gains tax when you sell. A few months of neg gearing may not be worth the cap gains tax.

Possibly a bit more complicated then that bud.

- Is the existing $100 being reported;
- What percentage of the property is income producing;
- Possible CGT exposure;
- Arms length transaction

List goes on, just some food for thought.

Cheers,

__________________
[SIGPIC][/SIGPIC]

If he has been living with you for more than 6 months, he could claim a gay de-facto relationship and take half your house

__________________
There's a hoon in every Typhoon

No the existing $100 is not reported.
How is the percentage of property income relevant? i.e. he is effectively the sole tenant for a period of 3 months.
i did not think the gct exposure would be an issue because I will be moving back in there for years to come.
what do you mean by arms length?

Can you claim negative gearing even if you are living there but renting 50% of the house out?

Cheers

Brendon

__________________
Losing is worse than death. You have to live with losing....

Hey mate, best to get some advice on this so its set up properly and you receive all possible benefits of negative gearing.

Just remember there are short term and long term issues to take into consideration.

Its not as easy as getting a generic rental agreement and throwing some figures into a tax return to possibly reduce any future income tax liability.

A more informed decision is a better decision

__________________
[SIGPIC][/SIGPIC]