Tax Tip 240: Buying a Main Residence which is initially tenanted and CGT.

Discussion in 'Accounting & Tax' started by Terry_w, 7th Sep, 2019.

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  1. Terry_w

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

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    If repairs they might be deductible against rent if incurred in same financial year as rent. If not then improvement and added to cost base
     
    Terry_w, 25th Feb, 2020
    #21
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  2. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    1. If the repaint arises due to rental wear and tear its potentially deductible. However in this case as there is a short interval I would consider it non-deductible as an initial repair and it would be a element of the costbase. The wear and tear is evident at the time you acquire the property and doesnt occur after.

    2. Carpet is also a CGT cost and would increase the costbase.
     
    Paul@PAS, 26th Feb, 2020
    #22
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