I was reading an article the other day by a well known property renovator.
The article was about purchasing a house and renovating as a rental. There was a line that read " immediately put up a for rent sign as this prevents future arguments with the tax office".
This has me worried. I thought that I could by this property, renovate happily and then rent the house out. Any work I do will be classed as an improvement anyway, and thus will be allowed the normal depreciation allowance - won't it?
Does the house need to be on the rental market before I make any repairs (renovations)? Is there something you miss out on if it is not?
Could not find an answer in any of Jan's books so hope someone can clear this up for me.
Thanks (and sorry for the continuing stream of dumb questions).