Advise please!

[SaraR]

Our investment property needs a bit of work the back wall's are falling down. This work is structural and foundation issue.
My question is can we claim the reno's on tax, it will mean that bathroom, kitchen and laundry will have to be re done as they are located along the back wall.

Is there anything else we should be aware of when fixing up the investment property?

I am new to this so all the advise is greatly appreciated.
Thanking you

 

[Rolf Latham]

I will let tax guys confirm

Sounds like capital improvement to me.

2.5 % or so per year

interest incurred would be deductible straight up though

ta
rolf

 

[depreciator]

How long have you owned the property for?
Did the problems exist when you bought the property?

 

[SaraR]

Hi guys thanks for your replies and sorry for late reply I couldn't find my past word, and struggling to use this web site a bit:-(
We owned this property for two years now, and the problems was existing but was covered up pretty well at auction time.
Thank you

 

[depreciator]

If the problems were there (though hidden) when you bought the property, the work you are planning to do is an 'improvement'. That means you can't claim it immediately but need to claim it at 2.5%pa.