Investment Property Claiming Renovations? - property investment perth
Ok, I bought as investment property in Perth (August) and once renovated, it costs me $ 15 000 (total) in a new kitchen, bathroom, tiles, etc. You need to extend the painting, as not the best place to to get a reasonable rental income. I went and saw my accountant last week and said I could not claim the $ 15,000 spent on renovation (something) about the renovation and capital purchases, but I may claim tax relief on capital gains from the sale of the property. In the 24 and I do not want to sell at least 15 years. Is that correct? Iv last 15 000 authentic renewal, but I can say that? Please help. Thank you.
Wednesday, January 20, 2010
Property Investment Perth Investment Property Claiming Renovations?
1 comment:
I'm sorry, but your mileage is 100% correct.
In the eyes of the renovation ATO still too early for the production of taxable income - that is, you have performed before the property was for rent and income production available. Basically, there are improvements to the property (eg, increase property values) are not compensated (up to maintenance of existing assets is limited), so that no immediate withdrawal.
Instead, they are recorded as capital expenses and added to the cost of the house, so when you sell, the higher cost base and thus the profit is reduced.
Many people are caught with early renewals.
You should consult your tax advisor to determine whether they can claim a deduction for expenses. This statement is a slight depreciation (2.5%) on the construction cost of the property are carried out, but depends on the age of the property. You can also depreciate May furnishings such as carpets, curtains and blinds or appliances such as dishwashers or hot water systems. You probably have a lot of land surveyors report, but as I said, talk to your accountant, you know your situation so it will be able to give the best possible advice. They seem to be on the right track so far.
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