Seeking some advice about when to do what to maximize claimable expenses. The situation is as follows.
Property currently claimed as PPOR, will be turning to IP in December. Intentions are to claim as PPOR with the 6 month/6 year rule.
Have done a few cosmetic upgrades (paint, lawns etc) in the meantime which I understand is not tax deductible.
We are planning on putting in new kitchen cupboards, replacing the vanity unit and shower screen in bathroom, and replacing the flooring in all bedrooms, ideally we'd like to do this prior to tenants moving in so as to attract a better quality tenant and a great return. So when can/should we do this? Can we, whilst still residing there, sign an agreement with a PM for an intention to lease and commence renos + repairs and make them deductible?
Which also brings around the question of depreciation schedule. I presume the answer to this one is after all capital improvements are done.
The one I'm finding tricky though is the timing of the revalue. We are planning on holding onto it for a few more years after the 6 year rule expires, so we would not be exempt from CGT for increase in value after that, or so is my understanding. So do we revalue at the end of year 6 or in December this year when it is converted to an IP?
Thanks in advance!
Property currently claimed as PPOR, will be turning to IP in December. Intentions are to claim as PPOR with the 6 month/6 year rule.
Have done a few cosmetic upgrades (paint, lawns etc) in the meantime which I understand is not tax deductible.
We are planning on putting in new kitchen cupboards, replacing the vanity unit and shower screen in bathroom, and replacing the flooring in all bedrooms, ideally we'd like to do this prior to tenants moving in so as to attract a better quality tenant and a great return. So when can/should we do this? Can we, whilst still residing there, sign an agreement with a PM for an intention to lease and commence renos + repairs and make them deductible?
Which also brings around the question of depreciation schedule. I presume the answer to this one is after all capital improvements are done.
The one I'm finding tricky though is the timing of the revalue. We are planning on holding onto it for a few more years after the 6 year rule expires, so we would not be exempt from CGT for increase in value after that, or so is my understanding. So do we revalue at the end of year 6 or in December this year when it is converted to an IP?
Thanks in advance!
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