Can you carry over refurbishment costs of rental property

weimo

Hi All,

Currently in the process of renovating a rental property, was curious whether you can carry over material / labour costs into the next tax year? i.e. 2 years max.....etc The reason I ask is because the property requires significant refurbishment therefore the rental income will not cover the outlay of refurbishment.....

Thanks in advance

dimbo61

In a word YES but you need to keep books and should get an accountant to check what you can claim.
Repair, replace and refurbish !

00ec25

refurbishment works may be capital or revenue in nature, so do you know the difference and have you kept accurate records to show which is which?

If it's capital then the carryover could be a lot longer than next year !!

weimo

If I'm honest I do not know what the difference is, this is my first rental property so is all new to me.

The majority of the work I'm doing myself, keeping all receipts for tools and materials.

There are a few areas where I will be getting tradesmen in.

I was hoping I could offset all of these costs against tax on the rental income.

Guest101

Make sure you get receipts for EVERYTHING. It can be a bit of a minefield, have a plan in place - a list of jobs that you are doing/will be doing and keep it all tallied up.