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When does a PPOR become an Investment Property?

Discussion in 'Real Estate' started by fully invested, 2nd Jun, 2011.

  1. fully invested

    fully invested New Member

    Joined:
    29th May, 2008
    Posts:
    2
    Hi,

    Just wondering when a Principal Place Of Residence becomes an Investment Property? Is there some event that defines when this happens, such as when a tenant first moves in?

    (The background is that my Mum has moved to a nursing home, and is considering renting out her home to help pay for the nursing home fees. Some expenses won't be deductible until it becomes an investment property, so understanding the timing of this is important.)

    Thanks,
     
  2. jrc77

    jrc77 Well-Known Member

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    26th May, 2008
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    My understanding is that it is the date that it becomes available to rent out.

    Regards,

    Jason
     
  3. samaka

    samaka Well-Known Member

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    Location:
    Sydney
    Technically it's interest that accrued to earn an income. So the date of the first rental payment makes you ok.
     
  4. jrc77

    jrc77 Well-Known Member

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    Please see "http://www.ato.gov.au/individuals/content.aspx?doc=/content/00237831.htm&page=9".

    This confirms my original view - interest is deductible from the date it is *available* to rent.

    Regards,

    Jason
     
  5. fully invested

    fully invested New Member

    Joined:
    29th May, 2008
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    Thanks for the replies and the link to the ATO article.