IP to become PPOR

[Nards]

Hi all,

We have a property that was originally our PPOR, it then became an IP (for the last few years) and we are about to move back into it.

It is in need of both some cosmetic (carpets, paint etc) and more substantial renovation (ie new bathroom due to water leak).

What is the most tax-smart way to tackle these problem? Are we able to claim new carpets and paint etc as IP deductions if they are done just before we move back in?

We certainly dont want to bend the rules, but determine what is the most tax-smart way to bring the property back up to scratch .

Any tax-savvy ideas?

Cheers,
Nadia

 

[ziggy2214]

Nadia

Yes better to do them before you move in but it won't help you much because
major things other than repairs have to be depreciated and as it will be your PPOR you won't be able to do this

 

[murtagh]

Nards, no idea - but I'd love to find out too ..

 

[ezza]

http://www.ato.gov.au/content/downloads/IND00133187n17290608.pdf

Check out Example 12 on Page 12.

Basically, as long as you do the REPAIRS (related to when the property was tenanted) before the end of the financial year in that it ceases to be a rental property, you should be fine.