Expenses incurred - PPOR vs IP

[PerthNoob]

What types of renovations/repairs/improvements would you undertake whilst a property is your PPOR and which would you wait until it is an IP in order to maximize tax deductions?

To phrase it slightly differently, which renovation/repair/improvement expenses would be depreciated over a number of years (and as such could be done whilst the property is a PPOR) versus expenses which can be deducted against income as a lump sum (and as such would be better done when the property is an IP).

Apologies if my terms and understanding is completely wrong as this is all a bit new to me

 

[D.T.]

If PPOR is changing to IP, everything will be depreciated, just not claimed for in the years you were living in it.

The question you should be asking instead, is whether/when you should have the property revalued, so as to affect the cost base should you wish to sell it in the future.

 

[PerthNoob]

Are there any types of expenses you would defer until the property is an IP?

 

[Paul@PFI]

Perth Noob...Also remember that an expense that isnt tax deductible may also add to the CGT cost base and so reduce the future CGT. Deferral of expenses (from the PPOR period) to the IP period is not different to a preliminary expenses. Its non-deductible. Deferral isnt a strategy that works without risks.