Well, I took the plunge and have now bought my first I.P, a small renovation which shouldn’t' be too hard. My feelings are hard to describe which I’m sure most of you have experienced, excited and nervous.
Anyway I was looking at some items such as a bath and shower on eBay and was wondering how it would be claimed on tax.Lets say I bought a new bath for my new IP property, I’m assuming that this is need depreciated overtime, do I need a receipt or would the surveyor just estimate how much it’s worth and calculate it as such.
Or am I barking up the wrong tree.. as i was just reading on here that because its a new IP it can be automatically tax deductable
Any advice would be great
Thanks Guys
You might consider renting the property out first for a while so that its an income producing asset before you spend money on ‘repairs’. To the best of my knowledge it wont be much of a tax benefit to you prior to this. Check with your accountant.
If you're improving the property with capital improvements, then yes – you should be able to claim the items that you purchased as deductible. Keep evidence of your purchase and give these to the qantity surveyor to include when they prepare the depreciation schedule.
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