Follow along with the video below to see how to install our site as a web app on your home screen.
Note: This feature may not be available in some browsers.
If they are bringing the gutters back to the state they were when the place was bought then it's deductible. If the gutters were already dodgy when the place was bought then it's not. That's my understanding anyway.Interest should be deductible as its for investment purposes. However the repairs sounds like they are actually replacements so are likely of a capital nature and will be depreciated and not an immediate repair writeoff.
A quick test for expense vs capital:
I repaired the ___________
I replaced the ___________
If they are bringing the gutters back to the state they were when the place was bought then it's deductible. If the gutters were already dodgy when the place was bought then it's not. That's my understanding anyway.
If I have an IP that hasn't yet rented out, and I would like to do minor updates to the place beforehand, would it still be tax deductible? Updates would be: sealing both shower floors (there was a crack in one), pruning trees, steam-cleaning carpets, painting).
Thank you Dave. So while the cost cannot be immediately deducted, may I start claiming the repairs as depreciation at the next tax year(s) - assuming it is already tenanted by then?
Thank you for the advice, Dave.