painting while tennats in unit

Hiyya,

My understanding is that painting and repairs done while a tenant is in place do count as deductions in the current financial year (rather than being treated as capital costs). Perhaps there's a tax buff out there who could confirm this?

However, painting with tenants in place can be a real pain. It's difficult for the painter because of all the furniture and movement (it's really hard to use an airless gun with furniture around you) and difficult for the tenant because of the intrusion and inconvenience (think of all the cleaning, preparing, sanding the walls generally have to undergo). My suggestion, should you proceed, would be to use a good quality paint (to reduce odor) and maybe even to offer the tenants a reduction in rent while the work is in progress (you can always raise the rent at the next review period and recover your loss over the following period, not to mention the potential tax break).

Cheers,
Art

http://www.ato.gov.au/corporate/content.asp?doc=/content/76048.htm
This is a grey area of tax law so it would be prudent to download Rental properties 2006 guide from the Tax Office website at http://www.ato.gov.au or phone 1300 720 092 between 8am and 6pm weekdays to order a copy

"An easy solution is to offer the tenant a couple of nights free accommodation in a near by hotel for a weekend and do the painting then.  Alternatively find out if the tenant is taking any long weekends away or holidays and do the painting whilst there gone."

I've known people to do this and then be accused of damaging the tenant's property. Much easier to paint etc between tenants. Usually cheaper, too, because the job is quicker when the place is empty.
As for claiming the painting as a deduction vs a repair, much depends on the extent of the painting you intend doing, the state the property was in when you bought it, and the length of time it has been tenanted under your ownership.

Scott