Tax Deductible? Rent out before living in it

[investorak]

If my intention is to buy a rental that i can rent out and then move into later

Do i still get all the tax benefits, same as if my intention was to have it as a normal rental?

[Rosco]

What timeframe?

Actually probably doesn't matter. Only if very short, and then that would only affect some costs like legal.

You will be able to claim the standard expenses against the rental income.

Ross

[investorak]

What timeframe?

Actually probably doesn't matter. Only if very short, and then that would only affect some costs like legal.

You will be able to claim the standard expenses against the rental income.

Ross

Thanks Ross, Probably 3 years

[Anthonyacat]

You'll be totally fine.

This is in fact a very intelligent way to buy your own home. You get deductions on legals, can do minor R&M and small capital improvements while the tenants are there (even full renovations, but those are much less tax-advantaged), and pump rental income to pay down the mortgage.

As soon as you move in - or rather, as soon as your tenants move out and it is no longer 'available for rent' - all expense claims must cease.

[AlexL]

Sorry to Hijack

In this situation in Auckland, would the 30% deposit rule apply (for investments)? Or could you go with less deposit as the intention is to move into the house as occupier?

[Wayne]

Sorry to Hijack

In this situation in Auckland, would the 30% deposit rule apply (for investments)? Or could you go with less deposit as the intention is to move into the house as occupier?

Of course as it is a rental when you buy it.

[AlexL]

That is a good point Wayne.

Hypothetically, it could go the other way where you live in the property first and then say 3 months later decide to rent it out?
I wonder who is doing these checks

[Bobsyouruncle]

If you don't have a property already Alex the rule wouldn't necessarily apply anyway.

[Wayne]

That is a good point Wayne.

Hypothetically, it could go the other way where you live in the property first and then say 3 months later decide to rent it out?
I wonder who is doing these checks

Couldn't claim legal then.
Probably no one checks until they do.
Is there a time limit with the deposit rule?