Claim expenses before renting

You can claim immediate deductions for such expenses as loan interest, council and water rates, and land taxes incurred when renovating a property for rent.

And you can claim deductions for interest on a loan to buy land on which you intend to build a rental property.

But if your intention changes, the interest may no longer be deductible.

The cost of initial repairs to rectify defects that existed at the time of purchase is capital expenditure and may be claimed as capital works deductions, spread over a number of years.

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