I purchased an Investment Property in April 2011 from my brother. It was rented at the time of purchase, however the tenants vacated a few months later. I decided to repaint, replace a damaged bathroom vanity unit, re screw the roof etc while to property was vacant.
It was my understanding after reading an ATO fact sheet "Rental Properties - Avoiding Common Mistakes that the above renovations would be classed as Initial Repairs and should be claimed as Capital Works Deductions over 40 Years. This is how I claimed in 2012 and 2013.
This year, after watching the ATO videos regarding investment properties, I am left wondering if this was correct. The videos state that the cost of initial repairs etc should be added to the property cost base for CGT purposes.
The property was constructed in 1978, so I assume not eligible for capital works deductions on the value of the existing building and I have never had a QS Report completed.
In addition, I purchased a security screen this year for one of the windows. It was under $300 and from reading Rental Properties 2014 I see it is listed as a Capital Works Deduction. Am I correct in assuming I deduct this over 40 years as well?
I would appreciate any advice.
Regards
Mel
It was my understanding after reading an ATO fact sheet "Rental Properties - Avoiding Common Mistakes that the above renovations would be classed as Initial Repairs and should be claimed as Capital Works Deductions over 40 Years. This is how I claimed in 2012 and 2013.
This year, after watching the ATO videos regarding investment properties, I am left wondering if this was correct. The videos state that the cost of initial repairs etc should be added to the property cost base for CGT purposes.
The property was constructed in 1978, so I assume not eligible for capital works deductions on the value of the existing building and I have never had a QS Report completed.
In addition, I purchased a security screen this year for one of the windows. It was under $300 and from reading Rental Properties 2014 I see it is listed as a Capital Works Deduction. Am I correct in assuming I deduct this over 40 years as well?
I would appreciate any advice.
Regards
Mel