ATO Community

Re: renovation to property when not renting

Ask a question

Enthusiast

Views 307

Replies 3

Hi ato community
Here is my question.

Person A has an investment property which was rented since the first day.
Now he plans to live in it for next 2 years. Before moving in, he needs to do some renovations.
He decides not to treat this property as his main residence for the 2 year period living in it.
Question:
What is the tax treatments for the renovation? Is it adding to the cost base of the property?

Thank you
Steve
1 ACCEPTED SOLUTION

Accepted Solutions

Best answer

ATO Certified

Community Support

Replies 0

HI @SteveLi

 

Further to the information provided by @macfanboy, you can find information on the elements of the cost base and calculating the cost base for real estate on our website. 

 

If you have further questions you can phone us on 13 28 61 between 8am - 6pm, Monday to Friday to speak with an operator. 

 

Thanks, JodieH. 

3 REPLIES 3
Highlighted

Taxicorn

Replies 2

Yes, it is added to the cost base.

Don't forget that he will also be able to add 3rd element costs to the cost base whilst he is living there

eg interest, rates, insurance...

 

Enthusiast

Replies 1

Thank you so muchSmiley Very Happy

Best answer

ATO Certified

Community Support

Replies 0

HI @SteveLi

 

Further to the information provided by @macfanboy, you can find information on the elements of the cost base and calculating the cost base for real estate on our website. 

 

If you have further questions you can phone us on 13 28 61 between 8am - 6pm, Monday to Friday to speak with an operator. 

 

Thanks, JodieH. 

Top Solution Authors