PPOR to rental

We are to move from our PPOR soon to a new home. Our PPOR will then become a rental property. We have 2 issues that I would like some feedback on:
1. Our PPOR is on a very steep block which we have negotiated via 2 street entrances. If we improve/repair seal the driveway can we claim this as a repair for taxation purposes? It really needs to be done from a safety point of view.Can we do this prior to tenants moving in?
2. In a similar vein, our PPOR has a timber deck in need of urgent repair due to extensive damage from borers/weather etc and it too has become a safety issue. Can we claim this as a repair or will the tax dept regard this as an improvement and disallow it?
 
Originally posted by djk
We are to move from our PPOR soon to a new home. Our PPOR will then become a rental property. We have 2 issues that I would like some feedback on:
1. Our PPOR is on a very steep block which we have negotiated via 2 street entrances. If we improve/repair seal the driveway can we claim this as a repair for taxation purposes? It really needs to be done from a safety point of view.Can we do this prior to tenants moving in?
2. In a similar vein, our PPOR has a timber deck in need of urgent repair due to extensive damage from borers/weather etc and it too has become a safety issue. Can we claim this as a repair or will the tax dept regard this as an improvement and disallow it?
Hi

The driveway will not be a tax deduction. You might be able to claim depreciation on the costs once the Ip becomes available for rent though.

As for the decking, I think it will be again a matter of depreciation on the improvements as the IP is not yet available for rent. If you left it awhile (at the cost of perhaps lower rent or longer vacancy) until tenants have been in a while then you would be able to claim repairs as a tax deduction. Again, improvements would be depreciable.

Have funa nd good luck

Dale
 
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