Expenses associated with setting up rental property

Discussion in 'Accounting & Tax' started by Max, 26th Jun, 2016.

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  1. Max

    Max Member

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    I have very recently purchased an investment property to rent out for short-term holiday rentals. I am wondering whether I can claim costs for furniture and linen etc purchased this financial year, when i probably won't earn any rental income from it until next month (i.e. next financial year) because I'm still setting it up.

    Thanks in advance :)
     
    Max, 26th Jun, 2016
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  2. wylie

    wylie Moderator Staff Member

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    Is it currently advertised?
     
    wylie, 26th Jun, 2016
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  3. Terry_w

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

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    Yes possibly.

    Furniture would have to be depreciated though depending on what it is.
     
    Terry_w, 26th Jun, 2016
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  4. Max

    Max Member

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    Thanks for the replies. It isn't currently advertised but I could do that.
     
    Max, 26th Jun, 2016
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  5. wylie

    wylie Moderator Staff Member

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    I'd make sure it is advertised in this financial year and then leave the rest to your accountant, who "should" know the answers.
     
    wylie, 26th Jun, 2016
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  6. Terry_w

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

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    Doesn't necessarily need to be available for rent now as long as the intention is to hold it to rent - you might be doing it up for this purpose for example.
     
    Terry_w, 26th Jun, 2016
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  7. Max

    Max Member

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    Great- thank you :)
     
    Max, 26th Jun, 2016
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  8. Paul@PAS

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

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    That ATO view was confined to a property which was previously tenanted etc. Its not quite as black and white.
     
    Paul@PAS, 27th Jun, 2016
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