Forum Replies Created
Hi Jamie, I'm in Adelaide
Thanks Terry, I already asked my accountant, but he was a bit vague with his answer, and I got the impression that he wasn't really too sure, hence me posting on the forum. I might have to try to pin him down on the answer. Cheers
The area that my potential job is located in Bristol is the suburb/area of Clifton, which coincidentally seems to be the most expensive. It seems that for a 2 bedroom flat in a Terrace, the starting point is about 250k GBP and terraced houses start at about $375K GBP for a shoebox.
Ian,
Do you know much about the surrounding areas – any recommendations … ideally I would like to be able to get at least a semi-detached house rather than an flat. How about the smaller towns on the west side, over the bridge, e.g. Leigh Woods, do you know much about this area?Richard,
What sort of deposit are UK banks requiring at the moment to obtain a home loan, and would they take account of overseas equity back in Australia? I already have a UK bank account with Barclays.Cheers,
Daren
Hi,
The ATO website states that:Claiming deductions
As with any rental property, the costs you incur when your home is rented out, such as repairs and maintenance, are deductible even though you are claiming the main residence CGT exemption.
You need to keep accurate records and remember, you cannot claim:
- an immediate deduction for initial repairs, renovation or construction costs (although capital works deductions may be available over 25 or 40 years for certain construction expenditure), or
- any deductions for periods the home is not rented out or not available for rent.
So seems to be two points
1) Any initial repairs/improvements can't be claimed as deductions, but could be depreciated
2) Deductions can be claimed as long as the property is available for rent (i.e. listed) not necessarily tenanted at the time.Does anyone else have other understanding of this rule?
Cheers
Thanks for your replies v8ghia and TerryW
I can probably avoid using the LOC for private expenses as you suggest. I spoke to my accountant today and he said that I could still claim deprecation on costs of renovating the PPOR prior to rental, but the thought also occurred to me to list the place for rental prior to commencing work to be on the safe side.
Cheers
Hi DHCP,
Thanks for the sound advice – a very thorough approach!
Thanks a lot for the information, Terry.
