Concrete Cancer - Deductions for Short Rental

Hi there,

Longtime lurker, and learnt a lot from these forums (thanks!)

Am hoping someone can comment on my understanding of the following:
I own and live in my unit (PPOR), which is requiring remedial works for concrete cancer soon.
The strata vote to proceed is due end of Jul 20, full payment via Special Levy required by end of Aug 20 ($40k), and works completed Sep 20 – Dec 20.
I understand if a QS assesses the works, the portion spent on repairs could be an immediate deduction for an IP.
Maintenance an added cost of investing in apartments

If I were to move out before payment in Aug20 and Airbnb my whole unit til Jan21, could I claim the portion of Special Levy spent on repairs as an immediate deduction (e.g. @75%, this would be $30k)?
Also, what period would I need to rent out my unit to claim this hypothetical $30k? E.g. from start of works to completion of works? Or perhaps the whole financial year?

I understand this would raise the following additional tax implications:
- Income from Airbnb is taxable, and Airbnb expenses deductible e.g. Airbnb/cleaning fees, insurance
- Interest on mortgage while listed on Airbnb is deductible
- Potential for further depreciation deductions from renovation in 2019
- CGT would be assessable for period it was listed (pro rata)

Will look into getting proper tax advice if I have understood the above correctly.

Thanks in advance to anyone who can assist.

Cheers,
Larry

 

won't be deductible as a repair as it relates to the time you lived in the property

 

Ah that's unfortunate, thanks for clarifying this for me. Much appreciated!

 

And special levies are non-deductible where they relate to capital works. It is capital expenditure. Could be a QS issue to be explored. Could be future cap Allowances available ONCE works are completed and assessed. A deduction for your unit and a % of common property.