Where is money best spent?

Hello all,

Sorry if this has been asked before. I've had a few searches but cant find anything.

I done my taxes this year but I think I stuffed up a little.

I have a house that I sold last financial year, and a house that I have had for a few years renting.
I replaced curtains in both houses.

The house that sold was only small and cost me just $850 in curtains.
The house I still hold cost me $2500 (had to do rods,hooks,tiebacks etc as well).

But due to my own clerical error, I booked the costs to the wrong houses. I swapped them around.
I think I have done myself an injustice as the $2500 could have been depreciated, but instead it will be lost as a capital expense on a house that sold. It is my understanding you cant claim any capital expenses on a sale as it is presumed you got that returned in the sale price?

Does that sound right?
In both cases the curtains were replaced due to tenant damage/wear. I can't claim that as maintenance though can I? That is a capital outlay?
My accountant has lodged, but there is no return yet.
I won't bother doing an amendment for this but I was just hoping someone could inform me for the future.

Thank you!

 

Go back to the accountant and correct the mistake after discussion. They may charge for extra time to fix it or it may be simple.

Curtains may be capital expenditure and not deductible in any event. If the curtian shad useful value left then the CGT proceeds would have been reduced by the remaining value of the curtains disposed of. That means less CGT.

 

Thanks Paul@PFI
I'm heading in to see my accountant Friday so will sort it out then.

I'm pretty green when it comes to taxes and claiming. I find the accountants are pretty good but I find it hard to find one that will actually sit down with you and explain things. I guess that's not really their job but it does make it hard to learn.

so for my own knowledge, if I ever found myself in this situation again, I should be looking to spend my money on the asset I am retaining and minimizing my spending on an asset I am thinking of offloading? I mean you'd have to spend smart money on things that can get you a better sales price. But generally speaking... or is it all much of a muchness?

As you can see, I have a lot of learning to do. I have been reading that guy's tax tips. They're are amazing and such a great resource for a beginner.

 

Some suggestions about tax :

1. Read the ATO rental property guide 2018
2. Watch our PAS TV videos
3. Propertychat reading
etc

4. They you can ask informed questions with the tax adviser... eg Not what can I claim ? but...Can I deduct the blinds ? If not, how does depreciation work ?

And make sure the tax adviser is property savvy. Not all are and it can make a difference. Signs of this can be evident with how they support their clients with a focus on property.

- Tax checklist or other guidance ?
- Other guidance for clients ? eg Video, podcast or materials
- CGT record keeping tools ? (Without it you may pay more CGT one day than is required)

 

As @Paul@PFI mentioned, your accountant can submit a variation for you. I believe you can edit 2 years back of tax returns if needed. You don't need to sit in front of the accountant to get it done... you can arrange it via phone/email if you wish.