Borrow to renovate PPOR which will then be converted to IP

[Able]

Lets assume i borrow to carry out some renovations on my PPOR. If i then convert the PPOR into an IP, will the interest on the borrowings then become tax deductable? I am assuming they would be but then realised i am not quite sure.

Regards
Able

 

[Imagine]

Hello Able,

If it is the entire property that is the subject then Interest is tax deductible from when a property becomes available for rent and off course you are not living in it at the time.

 

[Able]

Maybe i wasn't quite clear. I have the choice of carrying out some renovations with cash or borrowed funds. Assuming the PPOR will become an IP soon i may as well use borrowed funds (which i assume will become tax deductable once the property is an IP). That way i can inject the cash into my next PPOR.

If a loan is used to fund improvements to a property while i live in it, will the interest on the loan then become tax deductable if the property is converted to an IP?

Regards
Able