tax deductible renovations

Viewing 11 posts - 1 through 11 (of 11 total)

n0ahz0rk
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@n0ahz0rk
Join Date: 2004
Post Count: 16
March 1, 2004 - 4:55 am
Hi all,
I have purchased an IP with kitchen and bathroom in sound condition, nothing actually wrong with them apart from being old and looking old.
Is there any way to have a renovation done on these areas and claim the cost as a tax deduction ?
I thought that the deal was only repairs could be claimed but someone told me that if the place is tenented at the time it can be claimed… is this a load of garbage?
Andrew.
p.s. Sorry if this question is in the wrong area of the forum….
Mortgage Hunter
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@mortgage-hunter
Join Date: 2003
Post Count: 3,781
March 1, 2004 - 4:58 am
Yes it’s a load of garbage.
Repairs are work carried out to bring the property to a similar standard as when you bought it.
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
tonyy21692
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@tonyy21692
Join Date: 2003
Post Count: 128
March 1, 2004 - 5:00 am
Andrew
If a buy and hold, sounds like initial repairs and therefore not deductible but added to costbase.
If you are going to renovate and sell its treated as a normal tax deduction.
Cheers
Tony
n0ahz0rk
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@n0ahz0rk
Join Date: 2004
Post Count: 16
March 1, 2004 - 5:12 am
Thanks guys,
I’m intending to rent it out, so the tennents will have to make do with it as is for now!
Andrew.
Mortgage Hunter
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@mortgage-hunter
Join Date: 2003
Post Count: 3,781
March 1, 2004 - 5:13 am
Originally posted by tonyy21692:
Andrew
If a buy and hold, sounds like initial repairs and therefore not deductible but added to costbase.
If you are going to renovate and sell its treated as a normal tax deduction.
Only after the sale I think Tony.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
woodsman
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@woodsman
Join Date: 2004
Post Count: 714
March 1, 2004 - 5:25 am
Here’s a link to assist you
http://law.ato.gov.au/atolaw/browse.htm?toc=05:RUL:Taxation:1997:TR%2097/23%20-%20Income%20tax&c%20deductions%20for%20repairs
James
n0ahz0rk
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@n0ahz0rk
Join Date: 2004
Post Count: 16
March 1, 2004 - 5:29 am
Thanks James…
tonyy21692
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@tonyy21692
Join Date: 2003
Post Count: 128
March 1, 2004 - 5:30 am
Simon
Yes after sale.
Regards
Tony
JetDollars
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@jetdollars
Join Date: 2003
Post Count: 2,435
March 1, 2004 - 6:58 am
Thanks james for a good info
Warm Regards
ChanDollars
[Keep going, you’re on your way to Frolic Freedom!]
redwing
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@redwing
Join Date: 2003
Post Count: 2,733
March 1, 2004 - 7:11 pm
Get QS to do Depreciation schedule now and wait a bit before you renovate those areas..
As said above – garbage..
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
melbear
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@melbear
Join Date: 2003
Post Count: 2,429
March 2, 2004 - 8:22 am
You’ll also find that the ATO now classify kitchen cupboards etc. as part of the building, and you can only depreciate them at the building rate of 2.5%.
Cheers
Mel