tax question

i have a ppor atm which soon will become a rental,

future expenses i see are

5kw AC unit installation as it's a hot house in summer (1.5-2k)

1k for eletrcial meter box upgrade

my question is i've forgotten which is the best way of doing it. etc can i buy / get them installed now and then still be able to claim when it rents in 3-4 months. or should i wait and after 1st week of it being rented then install them?

Cheers, Elives

 

You had better wait till it becomes a rental

 

how long after it's a rental? i'm thinking about doing airbnb. so can i do upgrades after 1-2 stays? also whats the reason for it?

Cheers, Elives

 

Rent the place out, then do repairs as needed, and understand that improvements are depreciated over time.

 

An air conditioning unit could be depreciated over its lifetime - might be 5 years, i am not sure. But if you bought it now and then rented out the property 1 year later that means you have lost the ability to claim 20% of it.

In fact i am not even sure if you could depreciated it under the proposed changes to the law unless you purchased it when the property was a rental.

 

ahh i see well i would be renting it out in 3-4 months time but yea good idea might hold off.

proposed changes to the law? whats this? can't claim a expense from a investment property :s

 

Can't depreciate assets unless new

 

oh so if i installed now then rented in 3 months i couldn't claim because from the renting date it would be 3 months old? but if i bought new when it was rented (first week) i could then claim as it was new?

 

You will need to read the draft legislation

 

Claim them ?....You may depreciate the AC. If its a used asset when first rented $0 is deductible. If its installed after you move out then it can be claimed over time while the property is an IP. Typically rate is 13.33% pa diminishing value mtd.

The electricals are also likely to be capital expenditure and not deductible.