Can I claim depreciation on an IP when I move back in?

[exstatic]

Here is my situation, I am returning from the UK after living here for a few years, I rented out my PPOR effectively turning it into an IP.

On my return I plan on moving back into that property until we find a new place.

What I need to know is can I claim the depreciation on that property for the two years it was an IP? and any deductible losses as well?

Also, would it make more sense to move into a rented property while we look for a new PPOR and leave the existing IP as is...?

 

[yo yo ma]

It appears you will be able to claim the losses and carry them forward... would have been better to get advice on this before you left, rather than when you are coming home? Assuming you are a non-resident for tax purposes, you can carry the losses forward when you get home. Did you continue to put in a tax return when you were OS? Also remember the six year rule for CGT on the property; depending on you circumstances, it may benefit you to move into the place at some stage before the six years are up.

About whether to move back in or not, you probably need specific taxation advice looking carefully at the figures... It may also be a lifestyle choice for you.

Have a listen to the free podcast in the post below.

http://www.somersoft.com/forums/showthread.php?t=42387