Hi,
We purchased 1st IP, and the vendor rented back for 6 weeks after the settlement. The vendor have moved out, and our PM advised that we would need to fix the place i.e. re-paint, replace the carpet, change the bathroom vanity/shower screen, and add carport. We are in the progress of getting the renovation done:
– Re-paint
– replace carpet to floating laminate flooring
– change the bathroom vanity/shower screen
– install the carportAnd we are confused with the following:
1. Can we claim the renovation as repair deduction since we had rented the house for 6 weeks? (Since we couldn't avoid the renovation so any tax claims will be beneficial—> we hope).
2. Should we pay the traders by cash? As they often ask whether we want to pay GST, and if we pay cash then they will lower the price. We are not too sure which way to go.Any tips/advises will be much appreciated.
Thanks you.If you pay cash, obviously you can't claim as deductions…its dodgy, heaps of people do it, and it can be cheaper.
I say, play smart, get in a valuer, claim depreciation over x years and do it properly, UNLESS, the cash quote is way way cheaper..then go for dodgy, but play with the risk of getting caught and being very very naughty…Come to think of it, you will probably need council approval for the carport, so I'd say claim as deductions…good luck!!!
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