Hello Emu1208
None of that will be tax deductible if it is done before you start earning any income from the property i.e. before you first get a tenant. It will be seen as the cost of getting your IP and added to the cost base for CGT calculations if/when you sell.
Some things, even if they are done after you start earning income on the IP, are not immediately tax deductible but are depreciated over a period of years. The general rule is ….. it is only immediately deductible if it is a repair or clean up.
For example if you repair a fence then it is a deduction. If you replace a fence then it is depreciated over a number of years.Here is a link to the ATO site. At the bottom of the page there is a link to get a booklet called Rental Properties 2007 which is a good place to find answers to your question.
http://www.ato.gov.au/corporate/content.asp?doc=/Content/00119856.htm
Hope this helps
ElkaIf you want to render your house you might want to check a render paint from Dulux.
I haven’t use it yet, but from materials in their show room it looks very promising. It some kind of texture paint designed to give a smooth rendered-looking finish in 2 coats. It might be much chipper then ret someone to render the house.
You can check it in any Dulux display centre or shop.
Good luck with your reno.
How are you progressing with this Jase.
Hi Jaffa
The reno is supposed to settle tomorrow – 25th Feb. The buyer says everything is in place at their end, and my solicitor says everything is in place from my end. They have done the final inspection too, so this time I can't see any problems, but you never know until the money comes through.I will put up a post tomorrow (if I remember) to let you know what happens.
In other news, we settled (buying) on a property in Chadstone on Fri 15th Feb. It is going to be a 4 townhouse development. Last week we got it rented out on a 6 month lease, and this week we should get the planning permit application (DA) ready to lodge at council.
Also still looking for more. A couple of irons in fire, but nothing definite yet.
Good news. The settlement went through as planned on Monday 25th.
What a relief – at last.
Now on to bigger and better.Congrats guys…..nothing harder than waiting for settlement!! Good job!
Hey Jase… I had to dig this thread up as I don't know the way to contact you!
I'm taking a trip down to 'the big smoke' June 9th and would like to drop in and have a chat with you. So email to work something out! Or give me a quick call on the mob.I will be a couple of days down their and in no rush so I can pop over at a time that might be most convenient.
Tim, are you still holding onto your Springvale property and how is it going?
Reason I ask is we also have a property in Springvale but don't visit there much. Any updates on interstate and overseas migration welcome. I understand a lot of Asians are still moving into the area and there is a massive undersupply of new places for them to buy.
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