claim hws ppr

[fernfurn]

we have bought our next ppr but it came with tenants that we kept in there till we sold our existing ppr. We have now sold our existing ppr but with a 5mth settlement and now the hws has broken down. Do I declare the rent on my tax and claim interest and expenses (this will be for 11/12 mths) and can I claim the new hws?

 

[DaveM]

Are there tenants in there still? Is it a repair or whole unit replacement?

 

[fernfurn]

yes tenants will be there until we settle, then we will move in

 

[DaveM]

OK so its rented so you claim the rent as income and interest/mgmt/rates etc as normal.

HWS will depend if its a repair and immediate deduction or a replacement and depreciated over life of asset.

 

[Paul@PFI]

A replacement HWS would be dealt with as a depreciable asset if the cost exceeds $300. The depreciation is calc on the no of days based on the installed cost so there is no upfront major deduction. On the date then move out the written down value adjusts your cost base and there is no write off. Its a trivial claim overall. It may be worthwhile getting a QS report for the 11 months to max deductions and minimise tax concerns.

Yes you declare rents and deductions..."we" and "you" ?? If its owned by you and wife then you both declare your share of income and outgoings.