Tax tips for owners- rental properties

Getting initial repairs right

Initial repairs include any maintenance or improvements prior to getting tenants in. They include existing damage or work required when you bought the property, even if you don’t fix the issues immediately. For example, replacing a broken window pane and repairing damaged floorboards.

You may be able to claim a deduction over several years as a capital works deduction. These costs and any unclaimed initial repair costs can be used to work out your capital gain or capital loss when you sell the property.