Hi, I just new in the “real estate” world.
There are some issues that I want to ask.I’ve excess money and I’m thinking to buy a property (say 20% from my own pocket and 80% mortgage), and the question that comes up from my brain is:
1. After I bought the property (for investment), say I want to renovate some the property. Can I claim the expense that I spend (for the renovation) as a capital loss for my tax income ??
2. Say I bought the property on August, and after doing some renovations for a month, the property was ready to be rented on September. Say, the property still vacant for 2 months (until November). On December, the tenant like the property and decide to rent it (so I start to get the income from December). In case of negative gearing, when I can claim as a capital loss ?? Is that from August, September or December ?? How about the period when the property is vacant ?? Can I still be able to include this expense for my tax deduction ??
Thank you, and your answer will be appreciated.
1. If its a renovation, no.
2. You can claim costs from when the property was available to be rented. ie September
and the question that comes up from my brain isLeo777, that’s a classic[laughing]
Be careful Leo, initial repairs are not tax deductible and are therefore treated as capital.
To claim a deduction, you would need to rent the property out initially before getting the repair work done.
Cheers,
Mark Unwin
Williams Partners Pty Ltd
http://www.wp.com.auLeo,
In answer to your (repeated) question, see your other thread as well:
https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=16134
Cheers,
Jo
You must be logged in to reply to this topic. If you don't have an account, you can register here.
