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Buying items for IP prior to settlement

Discussion in 'Accounting & Tax' started by mikey7, 1st Sep, 2016.

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  1. mikey7

    mikey7 Well-Known Member

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    Hey all, a tax/accounting question..

    My new IP settles on Monday 5th, and ill be heading there to do pre settlement inspection etc.

    I intend on having ceiling fans jnstalled in each of the bedrooms and doing some minor painting and cleaning myself.

    So I have a few questions:

    - Can I buy the ceiling fans NOW (before settlement) on my investment credit card, which will be paid off using my IP loan split and still get all the relevant tax gains? Or do I have to wait til settlement?
    (Masters is running out of stock quickly).

    - I'll be driving up for the pre-settlement inspection and be there for key hand over etc. Driving from Syd to Bris (and back after a few days).
    Can I claim fuel for all of the trip, or just the way back? What else can I claim? Food etc?

    - If I need aomething whilst up there such as fuel for lawn mower and edger, can yhis be claimed when mowing the lawn?

    Thanks in advance.
    Mike
     
  2. mikey7

    mikey7 Well-Known Member

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    In addition to the above, the house has a signed tennant moving in 3 days after settlement.

    The only decent info I can find on ATO website is this:
    Rental property expenses | Australian Taxation Office

    And based on that, it sounds like I can claim what I want NOW as it has been advertised for rent (and now has signed tenants).
     
  3. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    I think you should be able to claim expenses such as fans etc (depreciate) but not the driving up before you own the property.
     
  4. Ghoti

    Ghoti Well-Known Member

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    I hope you don't mind me hijacking your thread @Mikey ;)

    So, as a general rule, are the costs involved in 'identifying' the property to be tenanted - such as travel costs, meals, B&P reports on properties you don;t proceed with - not deductable?

    Cheers,
    Scott
     
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  5. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Are these costs in relation to the tenancy of the property or its purchase?

    costs incurred for travel, reports etc for properties you don't buy are not deductible generally. Even for properties you do buy travel costs before settlement are generally not deductible. B&P may be a capital cost though.
     
  6. mikey7

    mikey7 Well-Known Member

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    Sydney
    Terry_w likes this.