Claiming Building/Renovations

[WebBoard]

From: Ajit De Silva


Hi All,

Being new around here I am amazed at the wealth of information,experiences and up to date strategies being exchanged. I am glad to be here. I do have something to resolve. That is, we own an IP and would like to build a 2nd storey on it and make renovations costing about 100K.

It has been valued at 235K and we owe 100% (being a new acquisition) on a I/O loan.

Is it possible to claim all the renovation costs if we continue to have tenants in there when the renovations are complete?

We would eventually like to move in ourselves. How long do we have to have tenants in there after renovations to keep claiming tax benefits?

Anyone's assistance with this would be greatly appreciated.


Ps: if anyone wants to email me..mail it to
[email protected]

Ajit

 

[Rolf Latham]

Reply: 1
From: Rolf Latham


Hi Ajit

I suspect you might get stuck with most of the cost as a capital improvement and is therefore added to your cost base . Not being a tax specialist though, but I think reno for deduction is restricted to replacements/repairs or make good.

Ta

Rolf

 

[WebBoard]

Reply: 1.1
From: Ajit De Silva


Hi Rolf,

Thanks so much for your reply. I had a bit of time to think about it and realized that the 2.5% building claim would only be applicable for the period it is to be used as an IP.

Your right the rest of the cost would be bourne by us.

Cheers again

Ajit