Does anyone have experience with being able to tax deduct the costs of renovations to IPs?
I know that you generally cannot claim renovations but what if the property is quite run down? Do the works have to be defined as ‘repairs’ to be able to be claimable?
How to differentiate between repairs and renovations?
Jim
JJ,
Repairs are defined as bringing the property to the condition is was when purchased.
So a repaint on purchase doesn’t qualify however a repaint two years down the track will be easier to justify.
Check with your accountant.
Cheers
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I agree with Simon, you cannot IMPROVE the property as I understand for taxation effectiveness LOL
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