When does your primary place of residence become an investment property?

[chumby]

Hi there,

We have our primary place of resisdence in town and a non income earning shack down the beach. Both are in need of renovations.

We are thinking about renting out ur place in town for a short while and using the funds to help renovate the shack.

Is this allowable and if so for how long? We are in TAS.

Cheers
Chumby

[jbocker]

Hi Chumby
You can use the rent money to improve the shack, but I think you will have a very difficult time having it tax deductible if that is what you mean by being 'allowable'.

Having your PPOR as a rental could potentially affect you property with tax implications. Be aware of what these are, so have a good talk to you tax accountatnt about both of these matters, because there are some good possibilities and some pitfalls.

[francinemelbour]

I guess that is allowable but you need to get a current appraisal of the property. If the value is less than a cost.