I have been renting out a room in my house for several years. The tenant moved out late March last year and since then I have undertaken repairs partially related to the wear and tear caused by the tenants, including:
- internal painting, and
- sanding and repolishing of the wooden flooring.
According to the ATO NAT 1729-06.2017: "If you no longer rent the property, the cost of repairs may still be deductible provided: the need for the repairs is related to the period in which the property was used by you to produce income, and the property was income-producing during the income year in which you incurred the cost of repairs."
My problem is that I had trouble getting a painter until July 2018 so by the rules I cannot claim it as deductible.
However, can I claim the expenses towards the cost base for capital gains purposes?