I'm considering traveling back to renovate my only property currently, an apartment. If I live in it for 2 to 4 weeks would this turn it into a PPOR? I want to live in it to renovate it and I don't want to be paying for additional accommodation when I'm there. Would this effect tax etc or anything thing else I need to consider, good or bad?
living In & Renovating IP
- Thread starter HomeBuyAU
- Start date
No.
No. I suppose if you wanted to be really strict about your interpretatioon of the tax laws, then they state that the property "must be available for rent" to claim any associated expenses.
In my view (and you'd need to form your own view, as a lot of tax law deductions go to your "original intention") even it it was being renovated, it could still be "available for rent". It can be advertised, potential tenants shown though, etc.
If you think about it, most tenants need to give 2-4 weeks notice anyway. So even if they said yes to renting your IP now, it will still be vacant for a few weeks - giving you time to complete the reno.
However, worst case scenario, is that you don't claim expenses for the 2-4 weeks you are there renovating. Personally, I'd only be living there to protect your vacant property, not to save on living costs, if you get my 'intention'.
