Property Repairs and Deductions

[aaronjod]

Hey Guys,

Buying a place which needs a little tidy up prior to re-renting. Tenants are vacating before we take over. Place has peeling paint in a few of the rooms/doors and needs bit of landscaping/rubbish removal. How do you go about deducting these? I remember hearing somewhere repairs are deductible that financial year, whereas improvements are not. Do we need a depreciation schedule otherwise? Whats the ruling on this?

Thanks

 

[depreciator]

Any work you do after purchase and before getting tenants can't be claimed as 'repairs'. The ATO's definition of repairs is to make good something that was damaged while you were renting out the property.
Work you do before tenants will need to be depreciated. Keep a record of everything you spend.
There will of course be additional depreciation in the property that you might as well claim. The amount will depend in part upon the age and condition of the property.
Scott

 

[Paul@PFI]

Scott may not have been clear. Contact a quantity surveyor and they will advise if you DONT need a QS report. Unless advised by the QS get one done.

 

[onesixseros]

I wish my landlord would fix stuff in my house *insert rant here*

 

[aaronjod]

Yep, cool. Thanks for clarifying.