Moving back in to IP and renovating - silly idea?

Hi all,

I've googled this and feel no more educated. So, I'm calling upon the collective wisdom of this forum. Here are the key points:

1. We have a property in Brisbane which we have been renting out for four years (we lived in it for a year prior this)
2. There's a possibility (not yet confirmed) that instead of moving to Cairns as per my previous posts, we may be moving back to Brisbane (a bit of a logistical nightmare, but that's beside the point )
3. The property is up for a major reno and a BA is in the works - we had planned to do this in September/October
4. If we were to move back into the property, would this bodgy everything up tax wise?

If we were to move in for 6-12 months, do the renovation and rent it out again would the renovations still be tax deductable? Would it depend on how long we moved in for? What do I have to watch out for?

Or, should we find a rental in Brisbane (sigh) and keep it purely an investment property until the renovations are complete.

I'm super confused as to how this whole thing works. I know it should be obvious but I can't figure it out.

Thanks in advance

 

Renovations will not be tax deductible regardless of whether an IP or PPOR.

But you will be able to claim building depreciation after the renovations if an IP.

So move in if it suits you, it won't make any difference.
Marg

 

Hmmm, even stuff like restumping and replacing the roof?
So, if we wanted to depreciate major items, would we able to anyway even if they were done while we were living there? Thank you for your help.

 

It might be a good idea to move in again but best to do any repairs while it is available to rent although u may be able to claim some after u move in in limited circumstances.

First determine are the renovations repairs or improvements.

 

Thank you... it is a mix of both repairs and improvements. The significant repairs are the aforementioned restumping and roof replacement.

 

Complete restumping and re-roofing are NOT repairs, they are capital improvements. The cost can be depreciated via building depreciation. They are not immediately tax deductible.
Marg

 

Oh bugger.

 

restumping isnt an immediate repair write off however what about underpinning due to land subsidence?