Can repairs be claimed if no tenant?

Hi, I recently purchased a house with the sole purpose of renting it out, however I want to make some repairs and improvements first.

a) can the repairs be claimed if there is no tenant yet? Note that I do have a tenant lined up to move in and can get the lease signed early, although no rent will be paid until they physically move in.

b) can interest be claimed on funds required to make improvements? (realise that improvements themselves cannot be claimed).

thanks guys
Jason
 
Hi, how can a property be repaired when you have not owned it for long enough for any damage to occur? With this in mind any initial works (including what you refer to as 'repairs') done to the property will need to be written off over time at the applicable rates.

Interest incurred on borrowings for same will be deductible.
 
thanks guys,

so even if the "repairs" were things like; fixing holes in walls, replacing rotten carpet, repairing leaking pipes, replacing unsafe light fittings, etc. are still not considered "repairs" due to them being like that when the property was purchased?
 
Yep, isn't it the case that the ATO assumes you were aware of these issues when purchasing the property - therefore the price you paid accounts for the
repairs that need to be carried out.

Cheers,

Jamie
 
Hi Acid

From the ATO regarding The types of repairs and maintenance expenses you can claim as income tax deductions.

Rental properties - claiming repairs and maintenance expenses

Also an ATO Download - Guide to Depreciating Assets 08-09

Apparently this is a hot topic with the ATO and a number of people continually get caught out claiming immediate deductions for the costs to repair damages or defects that existed when they purchased the property.

Not sure how you depreciate repairing a hole or two in the wall though ;)
 
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