Good Afternoon All,
we have an IP that we would like to do some improvements on to increase it’s desirability for future tennants and increase it’s value also. The property is currently tennanted.
We understand the improvements we did proir to letting it are capital investments. What if we do improvements between tennants? Are these claimable or are they capital improvements also. We are going to add a decking for an outdoor entertaining area.Appreciate your help,
Tony & DianeThe improvements you mention irrespective of when you do them, as long as it the property is for investment, is claimable though depreciation only not as a direct expense.
You would commission a quantity surevyor to undertake a depreciation schedule for your property, and this would confirm the amounts you can claim over the depreciable asset life…Some items may fall under the low value pool, which will allow you to claim the full amount however the QS will confirm this in their report.
…unless you can argue that it is a repair and not a ATO defined Home Improvement. Ie; replacing a faulty part of the property.
I’m pretty sure A new decking would be an improvement.
Live, Learn and GrowLifexperience
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