HDT renovation expenses

Discussion in 'Accounting & Tax' started by capitalist, 5th Jul, 2006.

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  1. capitalist

    capitalist Member

    Joined:
    1st Jul, 2015
    Posts:
    9
    Location:
    Melbourne
    Hi all,

    Recently I bought an IP through my HDT. I made a quick renovation while searching for a tenant. To help with the renovation works I engaged a handyman and I paid him cash on hand. He doesn't have a business so he couldn't give me any invoices.
    Can I claim the money I paid for his work?
    He is happy to include that amount in his tax return; he didn't earn any other income in the last financial year, however he doesn't receive any support from anyone.

    I think that the expense would have to be treated as capital and not repairs.

    Any comments?

    Thank you,
    capitalist
     
    capitalist, 5th Jul, 2006
    #1
  2. Nigel Ward

    Nigel Ward Well-Known Member

    Joined:
    1st Jul, 2015
    Posts:
    989
    Hi Cap

    Surely a simple solution is to create an invoice for him, post it to him with a self addressed envelope, get him to sign it and return to you?

    As to GST related issues I think I'll have to defer to our accountants. The lazy tax office seems to like people to withhold the GST component in certain circumstances.

    Cheers
    N.
     
    Nigel Ward, 5th Jul, 2006
    #2
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