Preparation before renting out property

Viewing 4 posts - 1 through 4 (of 4 total)

brindabella
Participant
@brindabella
Join Date: 2005
Post Count: 11
February 23, 2005 - 8:20 am
Hi groupies….advise required.
My wife and I are going to rent out our home (and refinance it in her name only) to minimise her tax.
Are we able to claim back all expenditure prior to renting out our home?
(it needs new oven/hotplate, repainting in and out, pest control work, some landscaping, re sealing of slate tiles and a hot water sesytem)
Question is: Should we wait until it is a “full on rental property” fully tennanted, or can we do it now (in preparation leading up toward renting it out)and claim the capital expenditure back.
We are in the ACT.(this will be our first IP)
Thanks in advance.
Boris & Elizabeth.
“Always have a plan B”
BB
depreciator
Member
@depreciator
Join Date: 2003
Post Count: 541
February 24, 2005 - 12:29 am
I assume you’ve spoken to an accountant about shuffling the debt?
Regarding the expenditure, you can really only claim it as an expense if the cost has been incurred while you have been renting the property out.
Do only what is absolutely necessary now – wash those walls instead of painting them – and wait till you have at least 6 months of rent under your belt before you do anything else.
Scott
Tax Depreciation Schedules
Australia wide service
1300 660033
[email protected]
http://www.depreciator.com.au
brindabella
Participant
@brindabella
Join Date: 2005
Post Count: 11
February 24, 2005 - 6:29 am
Scott – thank you once again for your input.
Yes we have broached this withour accountant.he was more concerned about having to pay stamp duty to transfer the papers into my wifes name only (technically as she is buying me out)…but thanks for your insight. ( we are slowly learning the processes).
By the way Scott do you guys have a rep in Canberra we may call on for a depreciation schedule – when the time comes.
Regards
Boris & Elizabeth.
“Always have a plan B”
BB
Mortgage Hunter
Participant
@mortgage-hunter
Join Date: 2003
Post Count: 3,781
February 24, 2005 - 8:01 am
i recommend Scott for a depreciation schedule.
I am a little concerned about your level of knowledge re running an IP. Please do a lot of reading here and elsewhere and considerd buying one of the many landlord manuals available.
You can only claim repairs on your tax. That is repairs due to tenants. Repairs prior to renting are not tax deductible, nor are improvements.
Scott has made some good suggestions and you wouldn’t go astray if you had a good chat with him over the phone.
Cheers,
Simon Macks
Finance Broker
[email protected]
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.