Deductability of car expenses

[Of The Vultures]

Would someone please be able to confirm whether I can claim the use of my car in the following circumstances?

1. Property purchased, renovated and immediately sold. Not rented at any point, nor available for rent. Car was used during the renovations - can the cost be added to the cost base? I'm assuming a max of 5000km worth.

2. Property purchased, renovated and rented out. Not available for rent during the renovations. Car used during the renovations. Can I claim up to 5000km of use or not because it wasn't used in the derivation of income (yet)?

Anything I can do?

Thanks!

 

[Paul@PFI]

1. Yes would add to the cost base provided the purpose for travel is for constructive purpose and can be demonstrated. A diary record should suffice.

2. Same. The repairs are initial repairs hence add to CGT cost base and are non-deductible.

Following commencing rental any ongoing repairs (you perform) the travel would be deductible against rent.

 

[Of The Vultures]

Thought that would be the case. Appreciate the reply Paul, thank you.