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Is this Repair Work & Maintenance Tax Deductable?

Discussion in 'Accounting & Tax' started by rhinsor, 13th Jul, 2015.

  1. rhinsor

    rhinsor Well-Known Member

    Joined:
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    Location:
    Perth
    Just a quick question for the accountants.

    I moved out of my PPOR in April to turn it into a IP.
    Bond and rent paid 19/06/2015.
    The lease was signed on the 20/06/2015.
    The tenants got the keys on the 24/06/2015.
    The lease started on the 26/06/2015.
    The repair was done on the 22/06/2015 but invoice has the 27/06/2015.
    The repair work was to replace the rusted parts of the gutters, fix joins & downpipes.
    Repair work cost $600

    The maintenance was mowing which was done on the 22/06/2015.
    Mowing cost $80

    When did this property become income-producing?
     
    Last edited: 13th Jul, 2015
  2. Depreciator

    Depreciator Moderator Staff Member

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    Rhinsor, roughly speaking, the ATO definition of a 'repair' is to fix stuff that has been damaged while you were renting the place out. That guttering was a problem long before your tenants moved in.

    Scott
     
  3. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    I'm +1 with Scott. Its never going to a be a repair deduction. Its same as an initial repair. It may be eligible for future capital works deductions.

    The date the property becomes available for rent is not relevant to this question. If it was, 19th June may be a relevant date for interest and council rates etc. Perhaps a few days or a week etc earlier if you had a agency agreement to find a tenant.
     
  4. rhinsor

    rhinsor Well-Known Member

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    Thanks for that. So for capital works would this be 2.5% over 40 years?

    I'm currently waiting on my depreciation schedule to be completed, so i'll mention this to them.
     
  5. rhinsor

    rhinsor Well-Known Member

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    I paid a $99 fee to use forleasebyowner to list on a few websites around May.
     
  6. Depreciator

    Depreciator Moderator Staff Member

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  7. Chilliblue

    Chilliblue Well-Known Member

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    Live and learn. At least you now have the knowledge and your post has informed anyone else who may be in a similar position.