Two Quick Qs

Hi all,

Just two quick questions relating to tax deductions :)

We purchased our IP in March 2014 and settled in June 2014, it has been tenanted since 28 June 2014.

In the last year, we've had to make a few repairs to the property, namely
  • Repair/replacement of broken/cracked glass in two different windows (fixed in the last month)
  • Cleaning of guttering
  • Removal of tree that had invasive root system and was damaging pipework
  • Repaint of front facade (back area was fine, just front was peeling paint - got worse after recent bad weather)
  • Replacement of a major section of rear fence that fell over after a heavy hail storm

All of these have been done in the time when the tenant has been in the property and paying rent.

A couple of weeks ago, the agent advised that the tenant was giving notice and is moving out at the end of their lease on 27 June 2015. As a result, we are going to move in and make this property our PPOR.

My questions!
1. Are all of the above items considered repairs? If not, which ones are not?
2. Will the fact that we are moving into the property (not until end of July, property will be vacant from end June to end of July) have an impact on what we can claim?

Thank you
vtt
:D
 
Hi all,

Just two quick questions relating to tax deductions :)

We purchased our IP in March 2014 and settled in June 2014, it has been tenanted since 28 June 2014.

In the last year, we've had to make a few repairs to the property, namely
  • Repair/replacement of broken/cracked glass in two different windows (fixed in the last month)if broken/cracked when you purchased no
  • Cleaning of gutteringhow soon after you purchased did this occur
  • Removal of tree that had invasive root system and was damaging pipeworkno this was an issue when you purchased even if not known
  • Repaint of front facade (back area was fine, just front was peeling paint - got worse after recent bad weather)see above
  • Replacement of a major section of rear fence that fell over after a heavy hail stormdid you replace with the same kind of materials

All of these have been done in the time when the tenant has been in the property and paying rent.

A couple of weeks ago, the agent advised that the tenant was giving notice and is moving out at the end of their lease on 27 June 2015. As a result, we are going to move in and make this property our PPOR.

My questions!
1. Are all of the above items considered repairs? If not, which ones are not?
2. Will the fact that we are moving into the property (not until end of July, property will be vacant from end June to end of July) have an impact on what we can claim?no as the property is not available for rent after 27 june you will not be able to claim for expenses relating to the period after 27 june

Thank you
vtt
:D
not really quick questions
 
Thank you - ok not really quick!

1. The window was fine when house was purchased. Both windows were reported as cracked by the tenant in late April 2015. Previous inspection reports done prior did not indicate any cracks in the windows.
2. Cleaning of guttering occurred in May 2015
3. Ok about the tree - we found out about this problem in the period between exchange and settlement when we received a letter from the neighbour though it took a while to rectify as we had to get council approval etc.
4. Front facade was not actually a problem when purchased. The paint deteriorated significantly in the last year after a lot of bad weather, and only in the last 6 months started to peel. I have photos of the condition when purchased. I should add that the property is an 1880s terrace. Not sure if that changes anything?
5. Yes replaced the sections of fence with same material. There is only about 1 meter of original fence remaining.


Thank you
vtt
:D
 
Hi all,

My questions!
1. Are all of the above items considered repairs? If not, which ones are not?
2. Will the fact that we are moving into the property (not until end of July, property will be vacant from end June to end of July) have an impact on what we can claim?

Thank you
vtt
:D

1. Most likely deductible
2. Yes. Your intention is to use the property as your PPOR. On the date the tenancy ends the costs all cease being deductible. You may need to apportion costs such as rates, June interest, borrowing costs etc for this matter.

The date tenancy ends will also be needed on file for future. It will be date that is relevant if property is ever sold for CGT apportioning.
 
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