Tax Query

From: Greg Loucos


We are in the process of settling on a townhouse and before renting it out would like to do some repair work to make it more appealing to tenants.

My question is if the floor coverings are damaged and we replace them can they be claimed as a deduction or do they become part of the capital gains equation?

Also if we repair gouges in the walls and repaint is this deductible as well?

I know I should be talking to my accountant about this but we are currently looking for a new accountant more tuned to property investing and as this forum is the font of all knowledge I thought I would ask for help.

Thanks in advance

Greg
 
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Reply: 1
From: Duncan M


Hi Greg,

There was a really long discussion on this exact topic a few weeks ago the
subject was "Maintenance" scroll down a little and read it..


Regards,

Duncan.
 
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Reply: 1.1
From: Dale Gatherum-Goss


HI Greg!

Duncan's right, this has been done to death lately, but, the short answer is that you will depreciate the improvements over time on your tax return and not claim them in one go.

Have fun

Dale
 
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Reply: 1.1.1
From: Greg Loucos


Thanks Duncan and Dale have found the post, I wasn't relying on a one off return so am not fussed just was wondering how it all works this being our first IP.

Regards

Greg
 
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