Is it still an IP if you do renovations first?

Discussion in 'Accounting & Tax' started by JMica, 16th Sep, 2015.

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  1. JMica

    JMica Well-Known Member

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    If you purchase an investment property that needs work is it classified as an investment from the beginning or is it only from when the property actually starts producing income ?
     
    JMica, 16th Sep, 2015
    #1
  2. Sean Reynolds

    Sean Reynolds Member

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    Sean Reynolds, 16th Sep, 2015
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    bob shovel likes this.
  3. bob shovel

    bob shovel Well-Known Member

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    bob shovel, 16th Sep, 2015
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  4. JMica

    JMica Well-Known Member

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    Thanks Sean, I should of been more clear. I'm referring more in regards to the actual loan, is the interest on the loan on the IP tax deductible from the beginning even if you won't rent it out for say a few months till you fix the place up..
     
    JMica, 16th Sep, 2015
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  5. D.T.

    D.T. Specialist Property Manager Business Member

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    You should base it on when its actually available to rent, ie ready to move in & begin advertising (not necessarily actually found a tenant)
     
    D.T., 16th Sep, 2015
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  6. bob shovel

    bob shovel Well-Known Member

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    So begin advertising immediately and if the tax man asks "they were requests and repairs required "
     
    bob shovel, 16th Sep, 2015
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  7. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    See my latest tax tip on deductibility of interest during construction - same principals apply
     
    Terry_w, 16th Sep, 2015
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