Tax deductions

My partner has owned a 2 bedroom unit in Newcastle for the past 5 or so years (originally purchased for $200k). It was originally his primary place of residence but he now wants to rent it out as an investment. My question is what deductions will he be entitled to and what needs to be done to get these? He will have 70k outstanding on the loan on the property.

My belief is he’ll be able to claim a portion of the interest on the loan, depreciation on white goods etc. There is some work being done to the property which means that a special strata Levy has been added to pay for these. Will he be able to claim a portion of this? He would also like to have the place painted and a range hood put in the kitchen before the tenant moves in - will this be deductible? Will he need to have an appraisal done by the bank before it’s rented out (I vaguely remember reading this somewhere but can’t recall).

 

Any expense connected to the income.
Interest on the loan but only the portion associated with the purchase or the improvement
rates,
insurance
management fees
strata
etc
Building works - get a depreciation schedule done. (not depreciation on plant and equiqment anymore)
special levy sounds like may be capital works
repairs
kitchen may be depreciated if done after he moves out.
Just claim against rental income in tax return

Download the ATOs rental guide.

If moving out he should get a valuation done - best not to use the banks
Tax Tip 173: Strategy – Don’t rely of a lender’s valuation for CGT Purposes Tax Tip 173: Strategy – Don’t rely of a lender’s valuation for CGT Purposes

 

Special levies are not deductible. But a revised QS report may offer enhanced deductions over time.

Likely not depreciation since the assets are used but speak to a QS about the benefits otherwise.

Get a tax adviser so all benefits are identified and maximised.

Get agents to give market val. Not the bank.Use the highest

Initial repairs to the former home are not deductible. The defects relate to personal use