Improvement/repairs?

Hi All,
I haven't bought a house yet, but I am looking and just
wondering this:
If I buy a house and I make some improvements
(new carpet, new kitchen etc) before I rent it out what depreciation can I claim?
I having been reading the posts on the forum and I
have learned, it is a good idea to get a QS report before and
after the reno's. But, the thing I am not clear about is
how is it you can claim those new items when they are improvements not repairs? Since, I thought you could only claim repairs as a tax deduction.
Roz.
 
Hi Roz,

You can't claim the improvements as repairs if you have done them immediately after purchase and, therefore, you cannot claim the cost of the improvement as a repair in you tax return. You can, however, scrap the value of the items you replaced as specified in your first QS report and then depreciate the new items in future tax returns as specified in your second QS report.
 
You can, however, scrap the value of the items you replaced as specified in your first QS report and then depreciate the new items in future tax returns as specified in your second QS report.

When you say "scrap the value" do you mean you can claim full depreciation for the outstanding (written down value) of the items you are scrapping?

So if you replace carpet that is still considered valued at $1000, you can claim that $1000 somehow?
 
Originally posted by Kevmeister
When you say "scrap the value" do you mean you can claim full depreciation for the outstanding (written down value) of the items you are scrapping?

So if you replace carpet that is still considered valued at $1000, you can claim that $1000 somehow?

Hi

Yes, that is right.

Dale
 
Top