Question for the guru's in this area.
The taxpayer purchases a property , leases it for a period of time (18 months) and during that time decides that, once the lease is up, he will use it as his PPOR.
Obviously it is financially better for the owner if the cost of repairs and maintenence are deductible, so the taxpayer embarks on a program to get any maintenence carried out now while its an IP, and deductible, rather than wait till he moves in when it won't. Including
- cost of getting gutters cleaned
- replace a faulty lock on front door.
- pool service and cost of chemicals
- pest spraying
- replace plants in garden (the lease was signed on the basis that the owner would look after gardening and mowing, but due to time constraints the garden has been somewhat neglected)
Just wondering what the ATO's view on this would be given that the property will be a PPOR eventually.
Also tenant has advised that the auto garage opener is faulty. Tradie visits the house and confirms that it's irrepairable and needs replacing. Cost to supply and install is $900. Is that expense deductible as a repair, or to qualify as a repair does the original unit need to be fixed even though it would uneconomical to do so?
Many thanks
The taxpayer purchases a property , leases it for a period of time (18 months) and during that time decides that, once the lease is up, he will use it as his PPOR.
Obviously it is financially better for the owner if the cost of repairs and maintenence are deductible, so the taxpayer embarks on a program to get any maintenence carried out now while its an IP, and deductible, rather than wait till he moves in when it won't. Including
- cost of getting gutters cleaned
- replace a faulty lock on front door.
- pool service and cost of chemicals
- pest spraying
- replace plants in garden (the lease was signed on the basis that the owner would look after gardening and mowing, but due to time constraints the garden has been somewhat neglected)
Just wondering what the ATO's view on this would be given that the property will be a PPOR eventually.
Also tenant has advised that the auto garage opener is faulty. Tradie visits the house and confirms that it's irrepairable and needs replacing. Cost to supply and install is $900. Is that expense deductible as a repair, or to qualify as a repair does the original unit need to be fixed even though it would uneconomical to do so?
Many thanks
