Claiming Interest or depreciation before a property is rented out

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waydo77
Participant
@waydo77
Join Date: 2011
Post Count: 155
August 28, 2014 - 2:24 pm
Hello helpful forumites!!
Currently in the process of converting my PPOR into an IP, namely landscaping, outside lighting, fans in bedrooms etc.
I have a couple of questions that im hoping you guys and gals can help shed some light on. (searched the forum already couldnt find much)
The property is currently in my own name. It was decided to rent the place about 6 months ago (hence havent been living there, I work away anyway and live at my partners when not working on the property)
1. Can i claim interest on the property from the point when work commenced to turn the property into an IP (even though it was not rented)
2.Can I claim depreciation from the time it was deemed an investment property or is it only from the time after the depreciation report?
Thanks for any help
Catalyst
Participant
@catalyst
Join Date: 2008
Post Count: 1,404
August 28, 2014 - 6:58 pm
You can claim from the time the property was available for rent. So technically if you were renovating no (aqs it wasn’t available for rent).
If auditted you will be asked for the rental contract you have with an agent to show it was available for rent.
You can claim depreciation the same, even if you got the report done a bit later.
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
August 31, 2014 - 5:14 pm
Even though you cannot claim the property expenses during the vacant time you may be able to use these expenses to reduce the CGT in the future – so keep the receipts.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
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Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au