Category «Rental Property – Deductions Other Than Interest»

PPOR to IP with a positive Cash Flow

Question After 4 long years my wife and I decided to turn our PPor to an IP. The strategy was to rent cheaper and benefit from the rental income. Purchase Price: $450K, Loan Balance $183K, Rental Income: 32K per annum (excluding all expenses), Current Value:$530KWe recently purchased a 2 bed unit as an IP under …

Claiming Deductions for Capital Works Replaced in Renovations

Question Hi JuliaEarlier this year you replied to a question in relation to scrapping where a property investor renovates a newly acquired property and whether the investor is entitled to write-off the value of the original div 43 capital works.In that case you referred to ATO ID 2010/35 with a final comment "note to qualify …

Is the project cost related to rental property tax deductable?

Question I bought an investment property in October 2009 and leased out in Feburary 2010. Because this rental property got a decent size backyard, it’s an ideal site for dual occupancy. Acturally, I’m applying planning permit with council. If the application is successful, I will build the back unit for rent as well to increase …