An opportunity has presented for us to buy a property with view to doing a reno and flipping it in 6 months. We are considering renting out our PPOR and living in the fixer upper Then moving back into the PPOR. We owe bugger all on the PPOR and would use some of the equity to fund the reno.
I am the sole earner and we currently have 2 cashflow positive IPs and.PPOR is owned 50/50.
The idea being that the rental income from PPOR will help in defraying the holding cost of the fixer upper.
I suspect there are heaps of tax issues here as follows:
Can we elect which property is our PPOR?
What interest costs are tax deductible ?
Can we get a tax deduction for the reno costs?
What will be the CGT implications when we sell the fixer upper?
and more?
I am the sole earner and we currently have 2 cashflow positive IPs and.PPOR is owned 50/50.
The idea being that the rental income from PPOR will help in defraying the holding cost of the fixer upper.
I suspect there are heaps of tax issues here as follows:
Can we elect which property is our PPOR?
What interest costs are tax deductible ?
Can we get a tax deduction for the reno costs?
What will be the CGT implications when we sell the fixer upper?
and more?