All Topics / Help Needed! / Renovating using a loan

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  • Profile photo of Die HardDie Hard
    Member
    @die-hard
    Join Date: 2011
    Post Count: 23
    December 17, 2011 - 7:15 am

    Can anyone help with the following-
    If you take a bank loan to renovate and then claim the renovation loan as an investment expense, can you additionally also claim depreciation if you're renovating using a loan???

    Profile photo of rudra_rrudra_r
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    @rudra_r
    Join Date: 2009
    Post Count: 61
    December 17, 2011 - 7:35 am

    I’m not an expert on this but how you obtain funds to do a renovation on an IP should not impact the claiming of depreciation. No doubt some of the more knowledgeable people on this forum can confirm that.

    Cheers
    Rudra

    Profile photo of CatalystCatalyst
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    @catalyst
    Join Date: 2008
    Post Count: 1,404
    December 17, 2011 - 11:26 am
    Die Hard wrote:

    Can anyone help with the following-
    If you take a bank loan to renovate and then claim the renovation loan as an investment expense, can you additionally also claim depreciation if you're renovating using a loan???

    Is it an investment expense or are you just claiming it is?

    If the renovation is on an investment property you are able to claim depreciation on the renovation. Where the money came from is irrelevant. If the money is borrowed to do a renovation on an investment property the interest payable is tax deductable.

    Profile photo of Die HardDie Hard
    Member
    @die-hard
    Join Date: 2011
    Post Count: 23
    December 17, 2011 - 11:44 am

    Thanx Catalyst.  So they allow double dipping.  Sounds good to me.

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