I have an IP that I just bought. I spend 3 days doing some minor repairs/upkeep to it before tenants moved in (spent about $600 – $800). As some of the things I did were replacing broken window pane, minor plumbing leak fixed, relay new lino in two rooms and repair some holes in the walls, can I claim this in the first year under maintenance or is it classified as capital expenditure?
“Life is not a journey to the grave with the intention of arriving safely in a handsome and well preserved body, but better to skid in sideways, thoroughly used, totally worn out and loudly proclaiming . …… Hell, what a trip !!”
Sounds like capital expenditure to me. Thats the state the property was in when you bought it. You incurred capital expenditure to get it to a state suitable for renting.
Ok, but only the window and plumbing were really neccesary to bring it up to a rentable state. The other stuff I did to make it more attractive.
“Life is not a journey to the grave with the intention of arriving safely in a handsome and well preserved body, but better to skid in sideways, thoroughly used, totally worn out and loudly proclaiming . …… Hell, what a trip !!”
as its only a small amt – i would whack it all to repairs – but the ATO would probably rule it as capital expenditure.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
