Tax on Rental Income

[sauluk]

Tax office is closed so can't ask them so thought someone on here might know.

If you live in a house with a friend who chips in for the mortgage you don't have to declare the income (you can opt out of the rent a room scheme as expenses outweigh income). However if you half way through the year move out and rent the property out fully you must file a return (if you make enough on it)

My question is can you offset the loss made on the property from interest on loans (mortgage) whilst you were living there with a friend? Intuition says no as it'd be you living there so doesn't count, but common sense says yes as you'd be recouping losses over the year so should only really pay tax on the real profit.

[ceeshaw]

You are right. The answer is NO as far as I understand.

[Stu]

Wow very confusing OP
but, if I understand you correctly your askingcan you offset the cost of interest whilst you were living there with a friend paying rent?
Yes, but only the proportion of interest that your friend is paying rent on.

e.g. a 3 bedroom house, friend uses one bedroom and has use of the public rooms then claim a third of your interest cost for the period, even if you are living in the house too.