Financing/tax implications of renovations to new IP purchase

I'm wondering what the possible implications are if using a PPOR equity split to fund both the deposit and immediate renos to a currently vacant newly purchased IP would be.

I understand the IO PPOR split used for the IP's deposit is 100% tax deductible when used for the purchase/deposit for the IP, but my understanding, and the seemingly grey area arises when one wants to fun some initial renos to the IP.

My understanding is that not all renos can be immediately tax deducted and must be depreciated unless they are repairs. However is it acceptable to use the above mention funds in the split for these renos and still be claiming the interest as a deduction?

The property is a 1950 post war, and is fairly fresh outside (paint), roof is done/good and interior freshly painted. However the kitchen and it's flooring appear to be original, or at least look that old and used. The worn and damaged lino in this room and the adjoining laundry will go immediately, and will likely just redo the under floorboards as per the rest of the house (though may consider vinyl planks for durability in this area depending on cost comparison).

Due to the state of the floor I would call this a repair/replacement, so I figure tax deductible and no issue with it paid by the PPOR IO split?

The kitchen which while previously being used is extreme retro and showing extreme age, so again one could argue replacing it is more of a repair than a renovation.

Cheers
Dan

 

Reno may be a capital cost and NT deductible immediately but interest on a loan used to fu d this can still be deductible

 

Thanks Terry, I thought it best to check first if it was advantageous and OK to fund it this way. Your tips and posts throughout PC have been so helpful in ensuring I keep the tax side of things clean and clear.