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Claiming maintenance after lease ends

Discussion in 'Accounting & Tax' started by Frosty123, 14th Feb, 2016.

  1. Frosty123

    Frosty123 Well-Known Member

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    Hi all,

    I've had my property leased out for almost three years. The lease will finish in a few days time when I return to live in it as my PPOR.
    If I find any issues that require maintenance (painting etc.), is there some sort of grace period after it is no longer a rental for which I can claim deductions?

    Thanks

    Frosty
     
  2. wylie

    wylie Moderator Staff Member

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    I don't think so. I believe it has to be available for rent when work is done. I could be wrong though.
     
  3. Rob G

    Rob G Well-Known Member

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    Complete repairs by 30 June to be safe.

    See The Commissioner's discretion in IT 180.
     
    Last edited: 15th Feb, 2016
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  4. Marg4000

    Marg4000 Well-Known Member

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    Discussed this recently with accountant friend. Unless property is available for rent it is not a deduction. So I guess it is best to do any work while still rented.
    Marg
     
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  5. Xenia

    Xenia Adelaide Property Manager Business Member

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    As Marg said
     
  6. Frosty123

    Frosty123 Well-Known Member

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    Thanks for the responses. After reading IT 180 on the ATO database, it seems like it's ok in the same financial year, so long as it can be related to maintenance that was required whilst the property was leased out (which I think painting would be..).
    Any others have experience with this?
     
  7. wylie

    wylie Moderator Staff Member

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    I'm fairly sure Rob G is an accountant. If so, then I'd be guided by his answer.
     
  8. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    To avoid all doubt its good practice to take before pics. If ATO query wear and tear etc its evident in pics.

    Some posters here are indicating that the property must be available to rent to pay repair expenses. That's not quite true and there are exceptions eg initial repairs. Where the costs are incurred during the tenancy its practical to make the repairs after vacancy and prior to next tenant. This doesn't mean that for those two weeks that the property is not available to rent. It may be...Just pending completion of those tenancy related repairs. A property not available for rent would be covered by the issues in Tax Ruling IT 2167 as an example or extended capital works eg brickwork, roofing, new bathroom etc.