Hi Everyone.
We have just got verbal acceptance on our first property! I have some questions I hope someone can help me with.
We plan to live in this property for 3-5 years before turning it into an IP and moving elsewhere. However we need to rent it out for the next 6 months. So its going to be going from an IP for 6 months, PPOR for 3-5years back to IP.
What are the tax implications with this? Can we still claim tax deductions for the initial 6 months we rent it out?
Is there anything special I need to do with my loan to ensure we dont have any tax issues? E.G should I be going interest only? Do I have to open a new account for the rent to be deposited into?
Thanks, any input would be appreciated.
Andrew
We have just got verbal acceptance on our first property! I have some questions I hope someone can help me with.
We plan to live in this property for 3-5 years before turning it into an IP and moving elsewhere. However we need to rent it out for the next 6 months. So its going to be going from an IP for 6 months, PPOR for 3-5years back to IP.
What are the tax implications with this? Can we still claim tax deductions for the initial 6 months we rent it out?
Is there anything special I need to do with my loan to ensure we dont have any tax issues? E.G should I be going interest only? Do I have to open a new account for the rent to be deposited into?
Thanks, any input would be appreciated.
Andrew