House being renovated, not available for rent this FY

Discussion in 'Accounting & Tax' started by katherine_j, 16th Jun, 2016.

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  1. Terry_w

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

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    I can confirm this.
    (joke)
     
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  2. Azazel

    Azazel Well-Known Member

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    That does seem like an awful long time.
    Sounds like more than a reno.
     
  3. katherine_j

    katherine_j Member

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    I'm not sure what the mystery is, but you seem very sceptical for no reason at all. This isn't a court case you're reading, its just my circumstances, it is hardly in my interests to describe the situation inaccurately when asking for advice.

    The property is an original 1950 large house which requires everything done, inside and out. we had some slow trades at one point in time, and also like to do some of the work ourselves. I haven't read anywhere that you have to take leave from your job and work full time on the renovation for it to be deductible!
     
  4. Azazel

    Azazel Well-Known Member

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    But it sounds like they should be done in a certain timeframe to be deductible.
     
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  5. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    @katherine_j this is somewhat unrelated but you may also be encroaching on the GST area by doing a full on renovation. I gather you are intending to rent out but if you sell within 5yrs you may be liable for GST.
    BTW I'm not an accountant - just stuff I've learnt from the ar$ehole accountants on here :)

    Personally I like to rent out first THEN renovate to help keep intentions clearer.
     
  6. Rob G

    Rob G Well-Known Member

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    NO TIME LIMIT

    It is purely a question of fact whether your holding expenses such as mortgage interest are incurred in earning assessable income.

    How does 5 years sound?

    Ormiston v C of T [2005] AATA 978
     
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