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All Topics / Legal & Accounting / Initial repairs and a timing issue …
I have a wierd but interesting timing issue.
After I bought my IP, I decided to do a kitchen reno. It started just after settlement and as the reno was going on, I engaged a PM to put up the property for rental. The reno was completed later and a tenant moved in with most of the reno done and it was completed AFTER he moved in.
In short, the property was available for rent and rented out during the kitchen reno.
So my question – is the renovations classified as capital works or repairs ?
Thanks in advance for the help !
Capital works i.e. 2.5%.
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