Join Australia's most dynamic and respected property investment community

Help with deductible items please

Discussion in 'Introductions' started by Sydney2016, 18th Jan, 2016.

  1. Sydney2016

    Sydney2016 New Member

    Joined:
    18th Jan, 2016
    Posts:
    4
    Location:
    Sydney
    Morning all

    My husband and I are moving back into our IP in February for 6-12 months and would like to repaint the inside walls/ceilings as they are looking a bit shabby. Do you know if we are able to claim the cost of this back please? I’ve had a look at various websites and the ATO website but can’t see any mention of painting.

    Regarding CGT – we have had our property since 2011 and lived in it for 1.5 years and have since rented it out. If we move back in for 6-12 months and then decide to sell it, would we have to pay CGT please?

    Any help would be very much appreciated :)

    Thanks so much
    Sydney2016
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,979
    Location:
    Sydney
    No and
    It depends - not if you use the main residence exemption.
     
  3. Sydney2016

    Sydney2016 New Member

    Joined:
    18th Jan, 2016
    Posts:
    4
    Location:
    Sydney
    Hi Terry, thanks so much for your reply. It will be our PPOR. Is this exemption for the 6 year rule? If so, when does the rule kick in - is it from when I bought the property or from when I last rented it out please? I have moved in and out of it a couple of times.
     
  4. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,979
    Location:
    Sydney
    If it was your main residence before renting out it could be exempted if you treat it was the main residence using the 6 year rule. 6 years frm the date it becomes available for rent.
     
  5. Sydney2016

    Sydney2016 New Member

    Joined:
    18th Jan, 2016
    Posts:
    4
    Location:
    Sydney
    Great, thanks Terry. Sorry to be a pain, but can I ask about why we can't claim to repaint the inside of the house as I thought you could claim for repairs/maintenance after the tenant moves out as long as the repairs were in the same tax year?
     
  6. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

    Joined:
    18th Jun, 2015
    Posts:
    8,979
    Location:
    Sydney
    If the painting could be classed as a repair you might be able to claim it if the damage related to the period it was occupied by a tenant.

    Best to check with your tax agent.