Moving out of PPR and leasing it

hi guys,

So we decided to move out from our existing ppr and leasing it out.

We will be renting a place over 6-12months with the aim of purchasing a new place down the track.

Just as we’re moving out, I thought about how I can make the existing ppr tax effective but what else would you guys organise and why apart from a depreciation schedule and market appraisal?

Interested in your thoughts.

 

read up on my tax tips for starters

 

yes you will need a market appraisal as the first used to produce income rule applies which means cost base is market value when first used to produce income.

depreciation schedule still worth considering. wont be as much depreciation as the past but capital works deductions can be significant so worth looking into.

need to look at how your loan is structured and make sure you maximise interest deductibility moving forward.

consider CGT and the interaction of the main residence absence provisions as part of your future tax planning.

 

Planning for the absence concession needs to consider that you must choose.... The former home or the new one. That can be chosen later when the first of them is sold unless laws change.

 

Much appreciated guys.

Yes in fact I did spend some capital to freshen up the ppr. This includes floor board, repaint of entire unit and a shower hob.

Not sure about residence absence so will look up on it in detail.