Renovation deductibility PPOR/IP

I'm planning to do some renovations to an IP apartment (currently rented out) and move in for a few years. Renovations will potentially cover quite a bit - redo bathroom, kitchen, reinstall flooring, repaint, might knock down a wall if non load bearing. I've never lived in this IP before (no 6 year CGT rule)

So after some reading, wanted to check I'm on the right track for tax implications. As it will be for private use, I won't be able to claim as tax deduction immediately. However I should get a QS report done right after renovations, so that I claim third element costs (ie non deductible depreciation) for the period its PPOR, add to the cost base should I sell it in the future. CGT will be pro-rata on years on IP vs PPOR.

And when it becomes an IP again, I can deduct the depreciation from that point onwards. Will the QS take into account the actual costs/receipts or make their own valuation ?

In regards to some works that are 'repairs' such as repainting, replacing old/damaged blinds - if I timed it right, doing it in the same financial year as it was an IP, will I be able to immediately deduct this ? I think most of the other reno planned are arguably capital in nature

any other considerations I've missed would be helpful
thanks

 

Depreciation can no longer be claimed on second hand items

 

but if I purchased new (eg. vanities, counters etc) and and installed during reno - are they still counted as 2nd hand when property becomes IP again ?

 

Yes if you will live there.

 

Of course there is still a CGT adjustment for the time when the property is rented and the Div 40 depreciation cant be claimed. And Div 43. Which may be both a 3rd element and a deductible depending on whether rented or own home.

I would discuss issue with a QS as there are merits to still having a QS report v's not having one. Dont let partial non-deductibility affect possible benefits.

 

Thanks for tip, in which case will reduce budget for renovations then !