Hi all
We settle on a new IP in a few days (still looking for a tenant, though ). We've already paid for a termite treatment (live termites in the grounds, though not the house; we couldn't delay treatment until after settlement). We'll be adding a dishwasher and one or two air conditioners after settlement, as we feel these are necessary, given it's a nice house in a good suburb.
I'm not sure how the termite treatment would be classified. The previous termite barrier is 7 or 8 years old, so would the new barrier be considered a 'repair' or an improvement? The treatment was also done pre-settlement, so before the property was able to start producing income (i.e. lettable to a tenant).
The dishwasher and air conditioners are improvements too, as they weren't previously there. Given this, does it matter if they're installed and paid for after settlement, but before we have a tenant in place, or does having a tenant in the property change anything from a tax perspective?
Thanks in advance,
GG
We settle on a new IP in a few days (still looking for a tenant, though ). We've already paid for a termite treatment (live termites in the grounds, though not the house; we couldn't delay treatment until after settlement). We'll be adding a dishwasher and one or two air conditioners after settlement, as we feel these are necessary, given it's a nice house in a good suburb.
I'm not sure how the termite treatment would be classified. The previous termite barrier is 7 or 8 years old, so would the new barrier be considered a 'repair' or an improvement? The treatment was also done pre-settlement, so before the property was able to start producing income (i.e. lettable to a tenant).
The dishwasher and air conditioners are improvements too, as they weren't previously there. Given this, does it matter if they're installed and paid for after settlement, but before we have a tenant in place, or does having a tenant in the property change anything from a tax perspective?
Thanks in advance,
GG