All Topics / Legal & Accounting / Converting PPOR to IP – Tax deductions

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  • Profile photo of colagirlcolagirl
    Join Date: 2011
    Post Count: 3

    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?

    Profile photo of CatalystCatalyst
    Join Date: 2008
    Post 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.

    Profile photo of TerrywTerryw
    Join Date: 2001
    Post Count: 16,213

    Probably capital expenses = claim depreciation.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide)

    Profile photo of Anthony KAnthony K
    Join Date: 2010
    Post Count: 56

    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

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

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