Knocking down a PPOR

[RE rocks]

Currently i am planning to knock down my PPOR. I want to take a step back and understand if there is a way i can get some money from the tax office

WHat i was thinking if i move out and start renting and rent out my PPOR which i plan to knock down ( Converting PPOR into IP) for 6 months and then demolish it, Can i get any tax benefits considering i knocked down my IP. If so, what are the benefits?

Suggestions

 

[RumpledElf]

All I can think of is the cost of knocking the thing down will be a tax offset as it is just an expense as part of your townhouse development. Same as the draftsmans costs, or the new sewer connection.

But all that will do is reduce CGT when you sell, its not a deduction in the current tax year or anything like property manager expenses or a handyman would be on an IP.

 

[RE rocks]

All I can think of is the cost of knocking the thing down will be a tax offset as it is just an expense as part of your townhouse development. Same as the draftsmans costs, or the new sewer connection.

But all that will do is reduce CGT when you sell, its not a deduction in the current tax year or anything like property manager expenses or a handyman would be on an IP.

Thanks for your response.

It is not a townhouse development.. Knocking the existing house abd building a new one.

 

[RumpledElf]

Changed your mind in the end eh?

Still a PPoR you're building or an IP?