All Topics / Finance / Can I claim interest payments, refinacing to do the improvements and all costs related to improvements on a rental property?

Viewing 2 posts - 1 through 2 (of 2 total)
  • Profile photo of AnitavAnitav
    Participant
    @anitav
    Join Date: 2010
    Post Count: 3
    March 31, 2011 - 10:58 pm

    I have a house that I rent out and claim the interest come tax time. However I am wanting to borrow a further $200k to raise and build in the house downstairs which would improve the value by $300k and will then be able to rent out as a 4 bedroom house or if I can get it through council- have a separate flat underneath. However I am under the belief that I can only claim interest on the initial cost of the house and ongoing repairs and maintenance and not improvements. Would appreciate an explanation.
    Thanks in advance Anita.

    Profile photo of Mick CMick C
    Participant
    @shape
    Join Date: 2010
    Post Count: 1,099
    March 31, 2011 - 11:21 pm

    You can claim the interest for repairs, maintenance and improvements as long as the home was rented out for a “period of time” and remains as your IP.

    ** im guessing your getting confused about claiming for the cost of the job itself..ie If you JUST bought the place and it was never rented out and you do the above job then you wont be able to claim the tax deduction but you can depreciate the cost over time once it becomes an IP>

    Regards
    Michael

    Mick C | Shape Home Loans
    http://www.shapehomeloans.com.au/
    Email Me | Phone Me

    Same Banks. Better Rates. Served With a Passion.

Viewing 2 posts - 1 through 2 (of 2 total)

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