Deductions for initial works ...

[bennido]

I just bought a new IP and intend to do some initial minor 'repairs' - like a new paint job, cleaning of carpets and walls, polishing timber, etc - to it in order to make it rentable.

I am aware that initial reno are considered "capital works" in nature and have to be depreciated over time. But in this case I am not putting in anything like a new kitchen or flooring.

1. Can the materials used like paint, cleaning solutions, etc be claimed as a deduction ?

2. How about the travel to and fro to the IP for the initial 'repairs' ? Can that be claimed as a travel deduction ?

3. Am I able to claim on new plants that I use to replace dead or dying ones ?

Thanks in advance for the help !

 

[Pat]

Sorry Bennido,

The payments are all capital and will have to be written off over time, they will not be an immediate deduction as you are preparing the property for tenancy.

 

[bennido]

Sorry Bennido,

The payments are all capital and will have to be written off over time, they will not be an immediate deduction as you are preparing the property for tenancy.

Hi thanks for the reply.

How about travel costs then ?

 

[bennido]

Bump ! ... anyone can tell me how the travel costs will be handled ? ... Do I just use a cents per km method and add it to the total cost of the reno for depreciation ?

 

[julia]

Travel for initial repairs is part of your cost base under Section 110-25(4)
reference ID 2007/67

Travel to deliver construction materials included in special building w/off PBR 65056