Income tax – deductibility of expenditure – renting to flatmates
This Question We’ve Been Asked explains when a person can claim deductions for expenditure incurred in deriving rental income, where the person rents a room in their home to a flatmate. It considers the possible application of the interest limitation, residential ring-fencing and mixed-use asset rules.
Income Tax Act 2007 – ss DA 1, DA 2, YA, CC 1, DG 3, DH 5, EE 50, EL 4, EL 9, s YA 1 (“main home”), Schedule 15