Renovating your investment property: the tax implications

With the Australian property market experiencing a quieter and flatter period than we've seen for a little while, this has been a terrific time for the canny investors to pick up some great deals. Always popular, renovation properties have still been selling well, whether an investment to live in, to do up and sell or to lease out. When it comes to tax time, renovating provides its own set of challenges, and requires a separate file for the numerous receipts, plans, council permits and other related documents.
 

Depending on the type of investment property you own, there are a myriad of issues that you will want to discuss with your accountant, come the end of the financial year; but here's somewhere to get you started.

 

Renovating, capital gains and capital works

Renovating the home that you intend to be your principle place of abode for the foreseeable future requires no special treatment for now; but if you are living in the property you are renovating, with the intention of later moving out to lease it (or if you intend to live in part of the property and rent the rest out), there will usually be capital gains tax involved. Read the full article here

If you would like to learn in person about the process of renovating for profit, RenovateAndProfit.com is hosting a one day seminar in Melbourne and one in Brisbane. These are information packed days where investors can learn all about making money from renovating to increase rental yields, build equity or for resale. These are our last two events for 2011 so if you are considering getting into renovation as an investment strategy and want to learn from the experts how to make renovating successful and profitable, make sure you book your place now

Melbourne Seminar: http://www.RenovateAndProfit.com/Seminar

Brisbane Seminar: http://www.RenovateAndProfit.com/Brisbane