Claiming new IP costs - which financial year?

[newlywed1311]

We will be settling on our first IP on the 26th of June this year.
I was reading another thread about claiming the costs associated with the purchase of the property and my understanding was that I may not be able to claim them this financial year because we have not derived any income from the property in this financial year. It is unlikely we'll have tenants in until next financial year.
Our costs include all purchasing costs, pest & building inspections, conveyancer, depreciation schedule, landlords insurance, etc. Some of these are claimable as deductions and some as depreciated costs. Can we claim them this year if we pay them this financial year? Or, do we have to wait till the next financial year as that is when the property will be utilised by tenants?
Thanks, in advance, for your advice.

 

[Propertunity]

It has to be "available" for rent - not actually rented. Even so 4 days from 26/6 to 30/6 is not so great a number for depreciation. It might be 4/365*$10K = $109.59 and if you are on a 30c tax bracket = $32.88 back in tax. (if you had $10K depn.)

A lot of the other stuff (all purchasing costs, pest & building inspections, conveyancer, depreciation schedule) is done over 5 years or added to the cost base anyway - so again no great shakes.

Your accountant will do it all - let them.

 

[depreciator]

It has to be "available" for rent - not actually rented. Even so 4 days from 26/6 to 30/6 is not so great a number for depreciation. It might be 4/365*$10K = $109.59 and if you are on a 30c tax bracket = $32.88 back in tax. (if you had $10K depn.)

Nope. It's only building and Assets over $1,000 that are claimed pro rata.

Assets under $300 e.g rangehood, are 100% written-off in the first year - even if that first year is only 4 days. Assets valued between $300 and $1,000 can go into the Low Value Pool and get depreciated at 18.75% in the first year - again even if that year is only 4 days.

Scott

 

[Propertunity]

It's only building and Assets over $1,000 that are claimed pro rata.
Assets under $300 e.g rangehood, are 100% written-off in the first year - even if that first year is only 4 days. Assets valued between $300 and $1,000 can go into the Low Value Pool and get depreciated at 18.75% in the first year - again even if that year is only 4 days. Scott

Thanks Scott - I defer to you. (I have not low valued pooled anything - I'm taking the long slow route )