My parents are looking to buy an investment unit. It needs a new kitchen and bathroom before it can be rented. The agent (it is in TAS) said you can't tax deduct the reno expense if you do this prior to it being tennanted, you have to rent it out for awhile first. This doesn't sound right to me??
Buy an investment prop, reno before rent it out?
- Thread starter relval
- Start date
You can't deduct the reno as an expense you can only depreciate it slowly, if you do the works prior to letting it out.
You may be able to claim some of the works as a 'repair' after the property has been rented out for a reasonable period. (note: there is no definition of what a 'resonable' period might be).
However, even if you tried this strategy, and you are in possession of a building report that identifies the kitchen & bathroom as being in need of replacement, then you are unlikely to be able to claim 'repair' status.
Repairs which can be an immediate write off in your scenario might go to painting and minor repairs like that.
could one claim a loss or percentage due to the works , in tax deductions as it is an income loss ?
Mmmm, I've read that more than a few times craigb and I'm still not exactly sure what you mean....can you rephrase?
