If you’ve been holding off on doing home renovations at your investment property, now’s the time to get a quick quote.
The Australian Taxation Office allows owners to claim deductions relating to expenses involved in holding their properties.
This includes repairs and maintenance expenses and any capital improvements completed during a renovation.
The entire cost of a repair is claimable in a single tax year, so if you can get it done before June 30, you’ll wipe that cost straight off your taxable income.
CEO of BMT Tax Depreciation and quantity surveyor Bradley Beer said investment property owners could avoid missing out on renovation-related deductions.
“Any expenses involved in completing repairs and maintenance such as replacing a damaged fence or cleaning out guttering can be claimed as an immediate deduction,” Mr Beer said.
You’ll also get an instant deduction on repairs such as replacing a burner on your stove, fixing a hole in the carpet, repairing damaged windows, maintaining plumbing and/or painting a rental property.
If you made a trip to the hardware store in the last financial year to buy supplies, you may also be in luck when it comes to claiming expenses.
“If the work being done is considered repairs or maintenance, the owner will usually require a receipt of purchase from a tradesperson for the supplies showing the date of purchase,” Mr Beer said. “It’s easy for homeowners to complete repair work that could actually improve an item’s value, so it’s important for investors to consult with their accountant for advice before starting work.”
However if you’ve left it too late, start planning to ensure a better tax return next year.