Hi All,
Looking at converting PPOR to an IP due to possible interstate move.
At the moment the PPOR has a 170k loan / 20k redraw / 90k offset.
We recently put a new kitchen in and are now looking at reimbursing ourselves with funds from the redraw for the cost of the kitchen, would that make that portion deductible once property turns into an IP as funds were used to improve property to find better tenants etc.?
Similarly if we took out the redraw and just put it in the offset now before the property turns into IP, then turned the property into IP, would the interest on 190k be fully deductible once changed to IP?
Or should I just write off the 20k as a lesson learnt and it can contribute to our equity.
Thanks
OG
Looking at converting PPOR to an IP due to possible interstate move.
At the moment the PPOR has a 170k loan / 20k redraw / 90k offset.
We recently put a new kitchen in and are now looking at reimbursing ourselves with funds from the redraw for the cost of the kitchen, would that make that portion deductible once property turns into an IP as funds were used to improve property to find better tenants etc.?
Similarly if we took out the redraw and just put it in the offset now before the property turns into IP, then turned the property into IP, would the interest on 190k be fully deductible once changed to IP?
Or should I just write off the 20k as a lesson learnt and it can contribute to our equity.
Thanks
OG