- colagirlParticipant@colagirlJoin Date: 2011Post Count: 3
I am thinking about turning my PPOR into an IP but I have a few repairs and maintenance jobs to do:
Painting the interior of the house
Installing two split system aircons
Replace window furnishings
Am I better off doing any of these things after a tennant has moved in to claim a Tax Deduction?CatalystParticipant@catalystJoin Date: 2008Post Count: 1,404
You have to look at more than just tax deductions. eg if you don’t do the things mentioned, how much lower will the rent be?
Also you can’t paint when you have a tenant in.
I would at least paint and if furnishings are awful do that.
Does tenant need 2 AC’s?? If so do it now. If not maybe leave or do one.
The curtains and AC are improvements so would go on the cost base.TerrywParticipant@terrywJoin Date: 2001Post Count: 16,213Anthony KParticipant@anthony-kJoin Date: 2010Post Count: 56
This is a mixture.
Repairs and renos are deductible particularly if documenmted as “expenses incurred for preparation of the property for rental purposes”
Painting the interior of the house OK as above
Installing two split system aircons NO this is an iprovement and is added to CGT cost based and depreciated over time you need a depreciation schedule before your rent
Replace window furnishings is this curtains/blinds? – if so OK it goes into furnishings and is depreciated