Initial repairs - help

So I have a tenant for a 1 year lease who is going in move in in 2 weeks.

1970's house, want to sink minimum for improvements into it as may demolish in 10 years, is a duplex so may not add too much to rent value.

Have just bought the house and there are a few problems which I am not sure whether to fix and about their deductability.

1. Leaking shower causing bubbling of next door wall paint - will fix this one.
2. Paint on the bathroom roof is super peely because there wasn't an exhause until recently.
3. Backdoor just has a lock with no key given at settlement. Should be able to ask for this yes? Its been about 3 weeks I didnt think to ask til now oops. If not, the security door does lock with a key, do i need to install a lock on the door?

None of these will be able to be deducteed as initial repairs right?
Will i be able to count them as capital works and depreciate at 2.5%?
 
So I have a tenant for a 1 year lease who is going in move in in 2 weeks.

1970's house, want to sink minimum for improvements into it as may demolish in 10 years, is a duplex so may not add too much to rent value.

Have just bought the house and there are a few problems which I am not sure whether to fix and about their deductability.

1. Leaking shower causing bubbling of next door wall paint - will fix this one.
2. Paint on the bathroom roof is super peely because there wasn't an exhause until recently.
3. Backdoor just has a lock with no key given at settlement. Should be able to ask for this yes? Its been about 3 weeks I didnt think to ask til now oops. If not, the security door does lock with a key, do i need to install a lock on the door?

None of these will be able to be deducteed as initial repairs right?
Will i be able to count them as capital works and depreciate at 2.5%?

If your going to fix water leak and repaint wall you mayaswell paint roof while your at it.

You will need deadbolt locks on main doors as part of the tenancy security requirements i believe.

Cheers
 
So I have a tenant for a 1 year lease who is going in move in in 2 weeks.

1970's house, want to sink minimum for improvements into it as may demolish in 10 years, is a duplex so may not add too much to rent value.

Have just bought the house and there are a few problems which I am not sure whether to fix and about their deductability.

1. Leaking shower causing bubbling of next door wall paint - will fix this one.
2. Paint on the bathroom roof is super peely because there wasn't an exhause until recently.
3. Backdoor just has a lock with no key given at settlement. Should be able to ask for this yes? Its been about 3 weeks I didnt think to ask til now oops. If not, the security door does lock with a key, do i need to install a lock on the door?

None of these will be able to be deducteed as initial repairs right?
Will i be able to count them as capital works and depreciate at 2.5%?

To the best of my knowledge:

1. Depends what you do. If you re-tile, new screens etc you could include in depreciation starting from now, possibly $20-50 alone as a tax deduction. Increases cost base for when you sell/redevelop.
2. Just scrape down, sand and paint - the standard will dictate how many times you will have to re-do over next 10 years. Adds to cost base.
3. You will need to have an operational lock if it is fitted - if you can't get key change the lock or have a key cut - what ever is cheapest. Adds to cost base, new lock can be depreciated.

Some things don't add value to rental $, others may help rent quicker or to better tenant. I would not hesitate with all three, shower leak the only potentially costly thing, the extent of how far you go and quality finish is at you discretion.
 
Correct me if wrong.

Depreciation claimed against rental income during rental period well and good.;)

But the amounts claimed each year must be "paid back" at sale time in CGT calcs ?
The balance left unclaimed (if any) from the dep report can be used to increase cost base ?

Either way, I would be doing the essential repairs to make good the IP for rental purposes.
 
If your going to fix water leak and repaint wall you mayaswell paint roof while your at it.

You will need deadbolt locks on main doors as part of the tenancy security requirements i believe.

Cheers

Question was will the initial repair be able to be deducted as a repair as a whole? Or will it be a capital work and then get deducted at 2.5% and then adjust the cost base for the remainder at sale (never)

Any way around this? Dont want to have a $1300 expense virtually non deductible
 
Question was will the initial repair be able to be deducted as a repair as a whole? Or will it be a capital work and then get deducted at 2.5% and then adjust the cost base for the remainder at sale (never)

Any way around this? Dont want to have a $1300 expense virtually non deductible

If repair is 'initial' , then thats capital work.
Way around it is to rent it first then repair it :cool::p
 
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