2 x Initial Repair Question

Discussion in 'Accounting & Tax' started by Michael Barnes, 20th Apr, 2017.

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  1. Michael Barnes

    Michael Barnes Active Member

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    Hi Guys - I know there's been a few posts on this so I appreciate the patience.

    1) Purchased a Brisy house March 2016 - rented out immediately - subsequently had about $1500 of piping plumbing that needed replacing about 6 months after the purchase (it was underground, had to be dug up)

    2) Purchased Melb house November 2016, tenanted Dec 2016 - have to replace faulty glass sliding door - going to cost approx $2500 (good quality second Hand)

    How should these be treated at tax time? I've had varying feedback...

    Thanks for your help!
     
  2. Propertunity

    Propertunity Well-Known Member

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    Were the issues on both properties existing at the time of purchase and were you aware of them via any P&B report/s you had done?
     
  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Not deductible if already faulty when purchased.
     
  4. Michael Barnes

    Michael Barnes Active Member

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    Thanks for your input...

    Melbourne house it was noted on the building report

    Brisbane house there was no sign/ indication on the building report that there were any plumbing issues
     
  5. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    It wouldn't be deductible even if it was faulty but you didn't know about it. What does the plumber say about how long it was faulty?
     
  6. Propertunity

    Propertunity Well-Known Member

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    Sounds, as @Terry_w said, that both are not immediately deductible.
     
  7. Michael Barnes

    Michael Barnes Active Member

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    At the time I didn't think to ask him - will get in touch. Appreciate the help :)
     
    Terry_w likes this.
  8. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    There was another thread on here about a year about about someone in a similar situation - pipes were broken at the time of purchase, but they didn't know about it until after settlement.
     
  9. Michael Barnes

    Michael Barnes Active Member

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    All part of the game I suppose ;) Thanks again Terry.
     
    Terry_w likes this.

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