Renovate as a Home Owner or Investor?

[vmmg1992]

Out of curiosity...

Can you live in an investment property while renovating it in order to claim all the deductions for the extra inclusions/modificatons or do you need to be classified as the home owner?

I would ideally like to renovate the property (while living in it) and then rent it out but not sure what rules apply.

 

[vmmg1992]

?? Anyone?

 

[Scott No Mates]

What 'extra deductions' - fhbg & ppor/cgt?

If the place is habitable, you can live in it.

You won't be able to claim anything until it is an ip and it will be depreciable in the most part.

 

[travelbug]

Your post is a bit vague.

So you are buying it as an investment but you want to live in it? For how long?
Do you own another home?

What do you mean by- claim all the deductions for the extra inclusions/modificatons?? or do you have to be the home owner>?? If you buy it you ARE the owner. Or is someone else buying it?

 

[vmmg1992]

I guess I worded my question poorly. Basically I was told you cant claim any renovation costs meanwhile you are living in the property (only when it is leased). Once I turn it to an IP then can I claim the costs?
.

 

[DaveM]

If you renovate prior to rentinig it out these are initial repairs and not deductible as they are capital in nature. They can generally be depreciated either at building 2.5% pa or at the prescribed depreciation per the ATO lifespan schedule.

Any renovations you do while living in it will form the opening value for depreciation less an allowance for the time it was not income producing

 

[WattleIdo]

What 'extra deductions' - fhbg & ppor/cgt?

If the place is habitable, you can live in it.

You won't be able to claim anything until it is an ip and it will be depreciable in the most part.

Is it worth getting a depreciation schedule done before renos, even while living in it? (scrapping) and then get another one done after renos???