We will subdivide our owner occupied property, can we live in our IP for 8 months?

Hi,

We plan to subdivide our owner occupied property, demolish and build into 2. We will submit for council's approval first, once approve, we plan to move out and live in our IP for 6-8 months until the new dwellings are ready.

I know during the building process, if we rent a house, the rent can be added to our building cost based.

How about if we move into our investment property for 6-8 months? Is it allowed?

Thank you.

 

Are you sure?
Never heard of this before.
Marg

 

Never heard of that method?

What about renting a property on the open market on a 6 month lease and then go on periodical, rent or keep your IP rented out so the relevant tax deductions still apply. Developments usually take longer than expected so double your time frame to be safe.

This would be something for an accountant to advise on so you know you are optimizing your situation whilst staying with in the parameters of the law.

 

Sounds odd - cost of rent added to the building cost base?

Really who told you this?

If you own the IP you can move into it.... but you can't expect to get tax deductions on the property also if you live there?

 

I heard from someone many years ago... Sorry, I could be wrong, my memory is not as good as before as you get older, lol

 

I suggest before you progress any further you get some specific tax advise on your plans.

 

will do, thank u

 

Not the case

 

Thank you Terry, I got it wrong completely

 

Perhaps you're thinking if you moved into IP while PPOR being built that the cost of maintaining the IP whilst living in it is added to the cost base?
This is because it is not deductible during this time as not an IP.
Never heard of your example before as per the experts comments above.