Hi guys
Assume the following:
1. You are renovating a property, works include replacing existing kitchen, replacing bathroom, and opening up a wall & adding a wall to create an extra bedroom.
2. Quote for works in cash $20k
3. Quote for works with receipt $30k (same guy doing the works)
4. You have sufficient savings to pay for the works in cash for $20k
I understand renovations are not necessarily tax deductible in whole in the year you do the renovation, eg: you can't claim $30k as a deduction in your tax return? Instead, a lot of the works will be depreciable or be subject to special building write off - this means spreading the deduction over a long time?
Does it make sense to just pay cash and save $10k NOW?
Cheers
Assume the following:
1. You are renovating a property, works include replacing existing kitchen, replacing bathroom, and opening up a wall & adding a wall to create an extra bedroom.
2. Quote for works in cash $20k
3. Quote for works with receipt $30k (same guy doing the works)
4. You have sufficient savings to pay for the works in cash for $20k
I understand renovations are not necessarily tax deductible in whole in the year you do the renovation, eg: you can't claim $30k as a deduction in your tax return? Instead, a lot of the works will be depreciable or be subject to special building write off - this means spreading the deduction over a long time?
Does it make sense to just pay cash and save $10k NOW?
Cheers