ditzy about depreciation

[WattleIdo]

Still wondering whether to move into run-down property or keep tenants there. Either way, I have to renovate. Can you answer a few questions for me?
1/ Do I get a depreciation schedule asap even if it's me who moves in? Do I then get another one done if / when I move out and tenants move in?
2/ If I do leave the tenants there, a lot of the renovations are more likely to be considered improvements rather than repairs. Am I right in thinking that improvements don't refund me as much as repairs?
3/ Is it better to get in and renovate the place to a good standard and then depreciate?
Or do as much as I can with tenant in place (fences, trees, garage, carport) and claiming it at tax-time?
I know there's no one right answer but I do like to consider every angle before I make a decision.
Thank you for your time.

 

[D.T.]

Are you planning to move in long term or just temporary while something else is going on?

If the former then is sorta a moot point.

 

[WattleIdo]

Are you planning to move in long term or just temporary while something else is going on?

Well, I don't know. Could be for the rest of my life. A few years at the very least. I don't make firm plans - reminds me of J Alfred Prufrock:
'I have measured out my life with coffee spoons.'
But the general idea is to (perhaps) live there for 3 -5 years and do it up. Then move on and rent it out.

 

[depreciator]

Recent purchase? If so, nothing you do to it can be considered 'repairs'.
If you're going to move in there and do work to it, just keep a record of everything you spend. It will be relevant if you turn the place into an IP down the track.

Scott

 

[WattleIdo]

Recent purchase? If so, nothing you do to it can be considered 'repairs'.
If you're going to move in there and do work to it, just keep a record of everything you spend. It will be relevant if you turn the place into an IP down the track.
Scott

Thanks Scott. Should I get a depreciation report 'for scrapping' before I begin anything?

 

[spludgey]

Thanks Scott. Should I get a depreciation report 'for scrapping' before I begin anything?

You can't scrap for a PPOR.

You're probably best of getting a depreciation schedule once you convert it into an IP. Your annual depreciation is likely to be higher than if you did one now and just used the residual value.

 

[WattleIdo]

You can't scrap for a PPOR.

You're probably best of getting a depreciation schedule once you convert it into an IP. Your annual depreciation is likely to be higher than if you did one now and just used the residual value.

Cool, thanks spludgey