Are capital expenses for renovation tax deductable?
Question from Andrew updated on 29th August 2008:
Our expert responded:
The expenses you are referring to are more capital in nature and are therefore not tax deductible. Those costs will be capitalised, which means they will be added to the value of the house and then depreciated at the appropriate rates. Until a property is available to be rented, none of the costs are tax deductible.
Kenina Court is a director of Acorn Solutions Limited, an accounting firm dedicated to working with clients to help them create wealth. She is an avid property investor, entrepreneur and seminar presenter on asset protection and wealth strategies.