From: Geoff Whitfield
I've been talking to my accountant about the property I'm going to settle on shortly.
There's 3 units under one title. The vendor lived in one; that will become vacant.
I would like the grounds in good state before showing off to tenants- that's no problems with the vendor.
But the accountant tells me that if I spend on the grounds before I get a tenant in the one unit, costs will be depreciable, because they are improvements. If the same gets spent with a tenant, it's improvements, and therefore not depreciable.
I'd like to get the grounds in a good state before tenants look at the place- but the deductions up front would be most welcome.
Any thoughts please?
I've been talking to my accountant about the property I'm going to settle on shortly.
There's 3 units under one title. The vendor lived in one; that will become vacant.
I would like the grounds in good state before showing off to tenants- that's no problems with the vendor.
But the accountant tells me that if I spend on the grounds before I get a tenant in the one unit, costs will be depreciable, because they are improvements. If the same gets spent with a tenant, it's improvements, and therefore not depreciable.
I'd like to get the grounds in a good state before tenants look at the place- but the deductions up front would be most welcome.
Any thoughts please?
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