I'm purchasing a property to live in that is currently tenanted. The tenant moves out 4.5 months after settlement. The carpets aren't in a good condition (from many years of renting out by previous owner, not the fault of these tenants) so if I replace the flooring before I then move in, can I claim that as a capital expense related to when the property was tenanted?
Not a repair - damage exists now, so not caused by tenants in 4.5 months after settlement.
You can treat as part of CGT cost base, although most of the affect will be lost in the pro-rata main residence exemption.
Make sure you record all your holding costs for the whole period not rented.
Not a repair - damage exists now, so not caused by tenants in 4.5 months after settlement.
You can treat as part of CGT cost base, although most of the affect will be lost in the pro-rata main residence exemption.
Make sure you record all your holding costs for the whole period not rented.
15 Apr 2026 · 4 min read time
15 Apr 2026 · 8 min read time
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