Newbie - PPOR vs IP tax questions

Hi all.

Bit of beginner assistance required here.

We have our (QLD) PPOR (via std home loan) and have had to relocate to Melb for work reasons.

The place is currently tenanted (~ 1yr+). I am wondering what the implications would be in terms of:

A) preparing tax returns ?
- would be this be classfied now as an 'investment property' since its deriving income irrespective of the type of loan ?
- could we claim expenses against this / tax benefits ?

B) purchasing another PPOR here in Melb
- would the type of loan available have any bearing ? Investment or otherwise
- Is there a lot of formalities required in converting PPORs to IP's ?
- Does the concept of multiple PPORs exist ?

The intend is to live here in Melb for long term in our own house whilst purchasing IPs in QLD and VIC.

thkx

-ash

 

You can definitely claim expenses against your PPOR-turned-IP for the period it was rented out.

I don't know of any formalities with switching but check with your accountant - there may be something to do with changing the PPOR status once you find a new place in Melbourne. The accountants will be able to clarify.

You can't have multiple PPOR's, from a tax perspective anyways.

 

A

Yes

Yes



B

No bearing on tax

None

Yes - but you can only count one property as the main residence