Hi Folks ,
I’m in the process of buying a property and I’ve discovered it needs some minor repairs . I asked a builder / handyman to do these but to check with me first as to settlement date to arrange a time etc . Anyway , he has gone in already ( ! ) and done the work . I said to him that’s fine , but I don’t actually own the place yet ! ….
Obviously , I cant’ claim these repairs / improvemments on a place I don’t own ….
Question , Is it ok to wait till after settlement to pay this guy so I can then claim these expenses ?
Regards,
MichaelMLV
I’m not an accountant but I have read a fair chunk of the Tax Act.
I reckon the answer is no.
The ATO would surely deem all of these things done (whatever they are) to be capital improvements. You cannot repair something back to it’s original state when bought…if you’ve just bought it…hence it ain’t a repair…hence you can’t claim it.
What you can do is pop the expenses into a depreciable schedule and claim it back dribble by dribble.
My thoughts only…don’t act on any of the above.
Hey thanks Dazzling for your reply …. but what I meant was …. Can I actually claim at all ? I’m not too fussed whether it’s a repair or a capital improvement ….. the work was done last week and I become the owner next week ….. so if I wait till next week to pay for the work done can I then claim those expenses …or is it taken from the actual date of the work ?
Regards,
StJAMLV
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