Hi,
I have purchased an investment property and I would like to do some renovations prior to renting it out.
I plan to rent it out for 3 or so years and then move into it.
I read the ATO Investment Properties 2008 paper and it's mighty confusing
Here is what I'd like to do with the reno and my questions below:
- New kitchen cabinets as current kitchen falling apart
- New oven, dishwasher, cooktop, rangehood
- Strip old floor tiles and retile with new tiles
- Installations and fitting of the above (labour)
- New bathtub, toilet, vanity
- Fitting of the above including plumbing (labour)
- New reverse cycle aircon as current heater and aircon not working
- Floor boards polishing
- Replace carpet in 2 rooms as falling apart
- Purchase paint
- Paint the house (labour)
- Maintain garden
- Build cupboards for bedrooms
Questions:
- Can I depreciate some of the items above while it's an investment property such as the oven, air con, tiles, carpet? if so, what % per year while it's being rented out?
- Is there anything I can tax deduct? has to be under $300 for that group of items?
- I believe the labour is not depreciable of deductable?
- Am I better off renting it out as is, then doing the fixes once I move in as all fixes due to rental damage/ware is tax deductable even if you move back into the property?
Many thanks for any advice or ideas
I have purchased an investment property and I would like to do some renovations prior to renting it out.
I plan to rent it out for 3 or so years and then move into it.
I read the ATO Investment Properties 2008 paper and it's mighty confusing
Here is what I'd like to do with the reno and my questions below:
- New kitchen cabinets as current kitchen falling apart
- New oven, dishwasher, cooktop, rangehood
- Strip old floor tiles and retile with new tiles
- Installations and fitting of the above (labour)
- New bathtub, toilet, vanity
- Fitting of the above including plumbing (labour)
- New reverse cycle aircon as current heater and aircon not working
- Floor boards polishing
- Replace carpet in 2 rooms as falling apart
- Purchase paint
- Paint the house (labour)
- Maintain garden
- Build cupboards for bedrooms
Questions:
- Can I depreciate some of the items above while it's an investment property such as the oven, air con, tiles, carpet? if so, what % per year while it's being rented out?
- Is there anything I can tax deduct? has to be under $300 for that group of items?
- I believe the labour is not depreciable of deductable?
- Am I better off renting it out as is, then doing the fixes once I move in as all fixes due to rental damage/ware is tax deductable even if you move back into the property?
Many thanks for any advice or ideas
