All Topics / General Property / tax deductible renovations

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  • Profile photo of n0ahz0rkn0ahz0rk
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    @n0ahz0rk
    Join Date: 2004
    Post Count: 16

    Hi all,

    I have purchased an IP with kitchen and bathroom in sound condition, nothing actually wrong with them apart from being old and looking old.

    Is there any way to have a renovation done on these areas and claim the cost as a tax deduction ?

    I thought that the deal was only repairs could be claimed but someone told me that if the place is tenented at the time it can be claimed… is this a load of garbage?

    Andrew.

    p.s. Sorry if this question is in the wrong area of the forum….

    Profile photo of Mortgage HunterMortgage Hunter
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    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781

    Yes it’s a load of garbage.

    Repairs are work carried out to bring the property to a similar standard as when you bought it.

    Simon Macks
    Mortgage Broker
    http://www.mortgagehunter.com.au
    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.

    Profile photo of tonyy21692tonyy21692
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    @tonyy21692
    Join Date: 2003
    Post Count: 128

    Andrew

    If a buy and hold, sounds like initial repairs and therefore not deductible but added to costbase.

    If you are going to renovate and sell its treated as a normal tax deduction.

    Cheers

    Tony

    Profile photo of n0ahz0rkn0ahz0rk
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    @n0ahz0rk
    Join Date: 2004
    Post Count: 16

    Thanks guys,

    I’m intending to rent it out, so the tennents will have to make do with it as is for now!

    Andrew.

    Profile photo of Mortgage HunterMortgage Hunter
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    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781
    Originally posted by tonyy21692:

    Andrew

    If a buy and hold, sounds like initial repairs and therefore not deductible but added to costbase.

    If you are going to renovate and sell its treated as a normal tax deduction.

    Only after the sale I think Tony.

    Cheers,

    Simon Macks
    Mortgage Broker
    http://www.mortgagehunter.com.au
    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.

    Profile photo of woodsmanwoodsman
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    @woodsman
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    Profile photo of n0ahz0rkn0ahz0rk
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    @n0ahz0rk
    Join Date: 2004
    Post Count: 16

    Thanks James…

    Profile photo of tonyy21692tonyy21692
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    @tonyy21692
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    Post Count: 128

    Simon

    Yes after sale.

    Regards

    Tony

    Profile photo of JetDollarsJetDollars
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    @jetdollars
    Join Date: 2003
    Post Count: 2,435

    Thanks james for a good info

    Warm Regards

    ChanDollars
    [Keep going, you’re on your way to Frolic Freedom!]

    Profile photo of redwingredwing
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    @redwing
    Join Date: 2003
    Post Count: 2,733

    Get QS to do Depreciation schedule now and wait a bit before you renovate those areas..

    As said above – garbage..

    REDWING

    “Money is a currency, like electricity and it requires momentum to make it Effective”

    Profile photo of melbearmelbear
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    @melbear
    Join Date: 2003
    Post Count: 2,429

    You’ll also find that the ATO now classify kitchen cupboards etc. as part of the building, and you can only depreciate them at the building rate of 2.5%.

    Cheers
    Mel

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