Hi
I just recently purchased 1st IP and it has been rented out last wednesday. Tenants have advised house does not have digital antenna installed. My question is I get that installed now, will I be able to claim deduction for it or this is again be considered part of purchase cost like all renovations I have done so far which are not claimable.If it is not claimable now, Can I think about getting this installed in 2 months time and then it can be considered as normal improvement and should be claimable then?
Approx cost is $275..
What do you say?
Thanks
AmanThe antennae is claimable…
as are any renovations you’ve done prior to the property being rented, its just that they need to be depreciated rather than claimed in full in the year of expense.
But you dont need to depreciate the antennae. That said, I have no idea why, but they’re usually considered to be owned by the tenant, ie: the tennant buys it, installs it, and takes it when they leave. what does your property manager say?
Mr5o1, Thanks for your reply.
I have met tenants personally when they moved in. They seems to be nice people and requested for digital antenna. I am pretty sure they are up for long term stay in my property and I thought why not create goodwill. They look like they are going to take good care of the property. (They rented last place for 7 yrs) Property manager has not been involved in this..
What about the paint job that I did myself. I know self-labour is not claimable but what abt cost of paint and stuff?
I understand what you mean about keeping the tenants happy.. good tenants are hard to find!
Paint is a tricky one.. According to the ATO the answer is “no”, because you painted before the property was rented.
That said, if the painting was only part of a range of activities which you carried out, and said activites could be seen to have increased the income producing abilities of the property, then you could group it all together and call it a “renovation”. Problem is, its “almost” pointless, because it has to be claimed over 40 years.
ok. I changed oven, cooktop in kitchen and bathroom renovation with change in vanity and cabinet. But whether it can all be combined together or not, have to check with my accountant.
Thanks
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