A
Anonymous
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From: Anonymous
Hello illustrious forumites,
I'm having difficulty working out if the money I have spent on my kitchen and bathrooms renovations will count as a tax deduction or capital expenditure (or maybe neither, but I hope not).
Here's my situation....I bought my first property just over one year ago. It's a flat in inner sydney. THe block was built in the 1970s. For the first 6 months we rented it out. Then after that my wife and I moved in. Within a few months of moving in, we paid to have the kitchen renovated. By September this year, the bathroom will also be renovated. (Both rooms were more than functional when we bought them, just with a horrible 70s decore that the wife couldn't stand).
We should be living here for at least 4 more years, and then move on to buy another PPOR. At that time, we will convert this home (our first one) into an IP.
So, is the money we've spent on the renos going to count as a tax deduction or a capital expense when the property becomes an IP?
Thanks in advance
Jim
Hello illustrious forumites,
I'm having difficulty working out if the money I have spent on my kitchen and bathrooms renovations will count as a tax deduction or capital expenditure (or maybe neither, but I hope not).
Here's my situation....I bought my first property just over one year ago. It's a flat in inner sydney. THe block was built in the 1970s. For the first 6 months we rented it out. Then after that my wife and I moved in. Within a few months of moving in, we paid to have the kitchen renovated. By September this year, the bathroom will also be renovated. (Both rooms were more than functional when we bought them, just with a horrible 70s decore that the wife couldn't stand).
We should be living here for at least 4 more years, and then move on to buy another PPOR. At that time, we will convert this home (our first one) into an IP.
So, is the money we've spent on the renos going to count as a tax deduction or a capital expense when the property becomes an IP?
Thanks in advance
Jim
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