Loading
This thread is archived and the information may not be up-to-date. You can't reply to this thread.
heshan.j(Newbie)Newbie
15 Feb 2024

Hi

I have a rental property and I have a question about claiming expenses for maintenance.


I did some repairs to my property AFTER I signed a 'management authority' with my real estate agent but BEFORE my tenant moved in as I figured it would be less disruptive to the tenant.

On the ATO website under repairs and maintenance, it says:


To be a deductible expense, the property must either:

  • continue to be rented on an ongoing basis
  • remain available for rent, even if there is a short period where the property is unoccupied – for example, unseasonable weather causes cancellations of bookings or all reasonable efforts to attract tenants were unsuccessful.


Can I consider the period between signing the rental authority and the tenant moving in to be 'available for rent'. During the period the property was vacant and was just waiting for a tenant to move in.


Thanks

831 views
3 replies
831 views
3 replies

Most helpful response

Most helpful reply

Taxduck(Taxicorn)Taxicorn
16 Feb 2024

This link explains when a property is genuinely available for rent.

https://www.ato.gov.au/individuals-and-families/investments-and-assets/residential-rental-properties/rental-property-genuinely-available-for-rent

There is not enough information provided to give you a definitive answer. For example, if the property was recently purchased then any repairs have to be capitalised and claimed as capital works. Also, if this is the first tenant and the repairs are not related to damage from the prior tenant then the repairs are not claimable. You also have not provided information on what repairs have been done, are they repairs or replacements of capital items?

All replies

Most helpful reply

Taxduck(Taxicorn)Taxicorn
16 Feb 2024

This link explains when a property is genuinely available for rent.

https://www.ato.gov.au/individuals-and-families/investments-and-assets/residential-rental-properties/rental-property-genuinely-available-for-rent

There is not enough information provided to give you a definitive answer. For example, if the property was recently purchased then any repairs have to be capitalised and claimed as capital works. Also, if this is the first tenant and the repairs are not related to damage from the prior tenant then the repairs are not claimable. You also have not provided information on what repairs have been done, are they repairs or replacements of capital items?

heshan.j(Newbie)Newbie
16 Feb 2024

Hi

Thanks for the reply.

The property was recently purchased, and the the works were done in preparation for the first tenant.

These included:

  • Replaced broken soap dispenser in dishwasher - $32
  • Repaired ridge capping on roof & cleaned out gutters - $1220
  • Serviced locks as some door locks weren't working - $220
  • Rental clean as advised by Real Estate agent - $425
  • Replaced cracked roof tiles - $250
  • Replaced perished fly screen mesh - $680
  • Repair sliding mechanism on fly screen door (as it couldn't be opened) and remesh - $205
  • Repair grout in shower and reapply silicone for waterproofing of bathrooms - $300

Featured articles

Tax tips for managing your side hustle

22 Apr 2024 · 6 min read time

Tax on gifts and inheritances

15 Apr 2026 · 5 min read time

How much tax should I pay on a second job? Claiming the tax-free threshold

15 Apr 2026 · 4 min read time

Top liked users

  1. Bruce4Tax

    (Taxicorn)

    3260 likes

  2. Taxduck

    (Taxicorn)

    2069 likes

  3. PayrollDeanne

    (Taxicorn)

    816 likes

  4. YellowPotato

    (Taxicorn)

    529 likes

  5. knaresbro

    (Devotee)

    364 likes

Top contributors

  1. Bruce4Tax

    (Taxicorn)

    10399contributions

  2. Taxduck

    (Taxicorn)

    4762contributions

  3. PayrollDeanne

    (Taxicorn)

    2061contributions

  4. YellowPotato

    (Taxicorn)

    1352contributions

  5. YEP

    (Devotee)

    837contributions

Loading
Maintenance expenses before a tenant moves in | ATO Community