Hi all
I’ve just purchased a property which requires some renovation and I’m trying to find out what expenses are tax deductible.
Can you help me in this regard – expenses include new carpets, painting throughout, garden landscaping and building repairs.
Brian
Hi Brian,
There have a been a few strings about this topic in the last few months – being tax time. Do a search and you’ll find them.
There is an ATO document (sort of a press release) that you’d find doing a search on the ATO site. It’s called Rental Property Deductions for 2004. There are only a couple of pages.
In part, it states that initial repairs ‘such as rectifying damage, defects or deterioration that existed at the time of purchase’ are regarded as capital expenditure and not immediately claimable.
As a rule, it’s an idea to try and get tenants into a property and start earning an income from it before you start fiddling with it.
Regards,
Scott – Depreciator 1300 660033
While you’re on the ATO site, you might also have a look at TR 97/23 for some detailed information.
Do a search in the Legal Data base under TR 97/23
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