Converting PPOR to IP - Tax deductions

Viewing 4 posts - 1 through 4 (of 4 total)

colagirl
Participant
@colagirl
Join Date: 2011
Post Count: 3
June 12, 2014 - 2:01 pm
Hi Everybody,
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?
Catalyst
Participant
@catalyst
Join Date: 2008
Post Count: 1,404
June 12, 2014 - 4:26 pm
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.
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
June 12, 2014 - 11:31 pm
Probably capital expenses = claim depreciation.
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Anthony K
Participant
@anthony-k
Join Date: 2010
Post Count: 56
June 13, 2014 - 3:18 am
Hi All
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
Anthony K