claiming deductions for house that hasn't been able to find tenant

Discussion in 'Accounting & Tax' started by shelleykins, 1st Apr, 2016.

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  1. shelleykins

    shelleykins Well-Known Member

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    Just wondering if anyone can please clarify. I have an IP that was previously a ppor , we moved out 3 and a half years ago. My tenants moved out in January and I have been unable to find tenants since then despite dropping the asking price $40 per week. I did some repairs on the house at the beginning of the vacancy (partly replacing leaking roof and damaged ceiling) as well as some improvements such as tiling, changing fixtures etc at the beginning of the vacancy (obviously not expecting it to last this long). I have just been advised that I have a plumbing issue that requires repairing for another $1300. Throughout the entire vacancy the property has been available for lease. Recently I was advised that there were squatters living in the house so we are now staying in the house while trying to lease it out. The house is inner city and has had excellent capital growth so i am keen to keep it long term. i was wondering if i move back into the house and take it off being available for rent for a couple of months to restart 6 year cgt exemption if the repairs that I paid for previously can still be claimed as a deduction as the house has legitimately been available for lease despite not finding a tenant thus far. Also, if I get the plumbing done next week and the property continues to be advertised up until then could i for example continue to advertise it for another couple of days past the repair and then move into the house "officially" and still claim it as a repair? I know that I could wait until after it is tenanted to do the repair but I suspect it will cause an issue for a couple of days to the tenants water supply.Any advice appreciated.
     
  2. Terry_w

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

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    You could probably claim costs legitimately if the property was available for rent and your can show this.
     
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  3. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    I would suggest personal tax advice in such cases
     
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  4. bread_boy

    bread_boy Well-Known Member

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    Is it possible to claim untenanted periods as a tax deduction?
    Lets say I have a property that rents for $300/w. Tenant A moves out after end of lease and it takes 4 weeks before Tenant B moves in.
    Is the 4 weeks loss ($1200) something that can be claimed?
     
  5. Terry_w

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

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    No. This is not an expense, just money that you didn't get.

    You can claim expenses such as rates, interest etc for this period - if you were still trying to get a tenant.
     
  6. D.T.

    D.T. Specialist Property Manager Business Member

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    Generally if actively finding a tenant, can claim the same things as if you had one.
     
  7. Scott No Mates

    Scott No Mates Well-Known Member

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    Here's an almost 'how-to' guide even when vacant and not looking for a tenant.

    Linky ===> Wakil