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Re: renovation to property when not renting

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Initiate

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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
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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. 

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Devotee

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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...

 

Initiate

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Thank you so muchSmiley Very Happy

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ATO Certified

Community Support

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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. 

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