Hi Everyone, First of all I would like to thanks everyone for their input on this forum!!! I have an enquiry about tax deductions on IP and below is the scenario. I was residing in PPOR(Property 1) for six years from 2016 to 31 Dec 2023, my new house construction (Property 2) completed and handover done on 31 Dec 2023 and my family moved into new property (Property 2) in Jan 2024. We hired property manager, rental contract signed and tenants moving in Second week of April and below work was carried out to put Property 1 on Market 1. Paint work $8500 New carpets $4000 Gas and Electricity compliance work as per new govt regulation from year 2021 - $1130 +$550 for inspection = $1680. Cleaning and rubbish removal $1400 Gardening around $400 Total $15,980 Since I have moved to new property(Property 2) in Jan 2024, I have also been paying mortgage on Property 1, so I have some questions in relation to this situation and I would appreciate any feedback on this, thank you. Q1. Can I claim interest paid on Property 1 Loan (now IP) from Jan 2024 as I moved out of the property in Jan 2024. Q2. Total amount spent is $15,980 so far not including agent fees, advertising property and other costs. Can this amount be claimed as deduction from personal Tax(PAYG) or some of this will have to go in CGT in future. Q3. Agent estimated property between $750k to 775k, do I need to get property valuation done via Surveyor in this situation to avoid any future CGT issues. If there is anything else that might affect in this situation then kindly provide feedback. Many thanks!!! Have a great day Regards, Immu
1 if the loan relates to that property purchase then probably 2 no 3. You might need a valuation done by a valuer
Fun fact I was residing in PPOR(Property 1) for six years from 2016 to 31 Dec 2023 This is more than 6 years
