I did it (but will my improvements be tax deductible ?)

I did it

Just bought my first IP
To make it more attractive I wish to do the following

general repairs about $500 wear and tear
paint inside and out
install ceiling fan
install built in wardrobe
recarpet and re lino
buy new light fittings
turf front lawn
pave small area in backyard
maybe flyscreen doors
electric safety switch

could someone tell me if any can be completely tax deductable or
what can be depreciated'
Also if there is "life" left in existing carpet can this be depreciated even though i pull it up?

Any suggestions say to wait the 12 month rule?

When should I get a QS in now or after the place is tarted up?

Dear Scott,

Congrats and welcome to the club.

Quick couple of general comments.

Beware of overcapitalisation on high yield low cost properties because it is "fun" unless it is "sweat equity". Properties in higher value areas have a lower risk of overcapitalisation if done right.

Look at items that can reduce costs as well as increasing potential rental rates. Eg. instead of flyscreens look at security screens as they can reduce your ongoing insurance premiums.

When should I get a QS in now or after the place is tarted up?

Get the QS surveyor in after you "tart" the place up as they will then have more items to depreciate. However this does not apply if you do not have a strict timeframe on which you plan to finish these cosmetic renovations.


In my experience of three renovations, I did most of the work myself or paid "cash in hand" to tradies, none of which is directly claimable.
I did get a QS each time after the reno's were done and did not tell them the prices I paid for things. Each QS report came back significantly higher than what I had actually paid out, which was a real buzz, and really accounted for the time and labour I had put into the projects.
Good luck with hopefully the first of many renovations, they are so much fun, amongst lots of hard work, dust and grime.
Wendy Bergsma

In a recent API magazine there was an interesting article about this very issue. It suggested that getting two QS reports done was the best option, as you have paid for the original fittings, carpets etc when you initially bought the property- therefore you should be able to depreciate these, as well as the new ones.
It will cost you more to do this, but if the surveyor considers it worthwhile in tax savings, then it probably would be the best option. There is certainly likely to be some "life" left in those old carpets, kitchen appliances and light fittings etc.
Let us know how you go.
QS report

Just had the QS report done. Used Depro. very professional and very worthwhile. Cost $550 but Iam miles in front