taxation question

W

WebBoard

Guest
From: David Corey


Can anyone help and answer me this.

I have three other I.Ps. I have placed a deposit on two more. I have not made settlement on either at this time (expected on 5th July 02, Next fiscal year. One of the houses is a reno with approx $25.000 to be done. I have a month off work and want to start the work now. I am sure that settlement will happen, so not worried about doing work for nothing if the vendor pulls out. Now the question, because I am already into I.Ps, can I claim my taxation deductions in relation to the reno, even though I have not made settlement on it.I consider I am already in the business so I can claim. Any one know?
David Corey
ALICE SPRINGS
 
Last edited by a moderator:
Reply: 1
From: Dale Gatherum-Goss


Hi David

Unfortunately, renovations are not tax deductible regardless of your situation.
The best result is that you can claim depreciation on the cost of the renovations.

Sorry

Dale
 
Last edited by a moderator:
W

WebBoard

Guest
Reply: 1.1
From: David Corey


Thanks for the answer Dale. I may not have explained that as well as I could have. I know I can only claim depreciation. But can I claim the portion of costs that I spend prior to settlement of the property. I.E would it mater if the property was not yet in my name.

David Corey
ALICE SPRINGS
 
Last edited by a moderator:
Reply: 1.1.1
From: Dale Gatherum-Goss


Hi David

Yes, you can. Your intention is to generate an income, if not a higher income, from that property and so it should not be a problem.

The only catch would be if there was an unreasonable delay between the costs incurred and the rental income. This might scare the tax office a little more.

Have fun

Dale
 
Last edited by a moderator:
Top