All Topics / General Property / tax deductible renovations
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….
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 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
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
Thanks guys,
I’m intending to rent it out, so the tennents will have to make do with it as is for now!
Andrew.
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 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Thanks James…
Simon
Yes after sale.
Regards
Tony
Thanks james for a good info
Warm Regards
ChanDollars
[Keep going, you’re on your way to Frolic Freedom!]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”
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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