All Topics / Legal & Accounting / Income tax for renting

Viewing 4 posts - 1 through 4 (of 4 total)
  • Profile photo of leo777leo777
    Participant
    @leo777
    Join Date: 2005
    Post Count: 23

    Hi, I just new in the “real estate” world.
    There are some issues that I want to ask.

    I’ve excess money and I’m thinking to buy a property (say 20% from my own pocket and 80% mortgage), and the question that comes up from my brain is:

    1. After I bought the property (for investment), say I want to renovate some the property. Can I claim the expense that I spend (for the renovation) as a capital loss for my tax income ??

    2. Say I bought the property on August, and after doing some renovations for a month, the property was ready to be rented on September. Say, the property still vacant for 2 months (until November). On December, the tenant like the property and decide to rent it (so I start to get the income from December). In case of negative gearing, when I can claim as a capital loss ?? Is that from August, September or December ?? How about the period when the property is vacant ?? Can I still be able to include this expense for my tax deduction ??

    Thank you, and your answer will be appreciated.

    Profile photo of woodsmanwoodsman
    Member
    @woodsman
    Join Date: 2004
    Post Count: 714

    1. If its a renovation, no.

    2. You can claim costs from when the property was available to be rented. ie September

    and the question that comes up from my brain is

    Leo777, that’s a classic[laughing]

    Profile photo of Mark UnwinMark Unwin
    Participant
    @markunwin
    Join Date: 2005
    Post Count: 35

    Be careful Leo, initial repairs are not tax deductible and are therefore treated as capital.

    To claim a deduction, you would need to rent the property out initially before getting the repair work done.

    Cheers,

    Mark Unwin
    Williams Partners Pty Ltd
    http://www.wp.com.au

    Profile photo of MonopolyMonopoly
    Member
    @monopoly
    Join Date: 2004
    Post Count: 1,612

    Leo,

    In answer to your (repeated) question, see your other thread as well:

    https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=16134

    Cheers,

    Jo

Viewing 4 posts - 1 through 4 (of 4 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.