First time investment property owner here. Investment property settled five days ago. I will get some tenants through a property manager. I want to do some upgrading – put in air conditioning and a new wardrobe. Do the first tenants actually have to be in place before I get these things installed so I can have them as a tax deduction – or because the property is an investment property, I can get these things installed before the tenants actually move in? I have already signed a tenancy agreement with a real estate company.
As long as the property available for rent then you are entitled to claim the deductions.
Richard Taylor | Australia's leading private lender
Air conditioner and wardrobe is an improvement. You can claim depreciation over the effective life of each item.
As long as the property is available to rent (ATO wording) on the rental market you have an investment property that you can claim depreciation on.
Because you are improving the property beyond what condition you purchased it in it is an improvement rather than a repair.
If the item is of low value you may be able to claim its depreciation straight off I can't remember the exact threshold
http://www.ato.gov.au/download.asp?file=/content/downloads/IND00191817n17290609.pdf
see page 12 on allowable expenses
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