Question
Meredith purchased a two-bedroom town house in Auburn early in July 2022 with the intention of renting it out. After purchase, the townhouse required the
Meredith purchased a two-bedroom town house in Auburn early in July 2022 with the intention of renting it out. After purchase, the townhouse required the following expenditure to prepare it for rental:
$2,000 Painting
$13,500 New cupboards and sink in kitchen
$500 Garden clean up
The house was rented in August 2022. In December 2022 the tenant reported that the water heater had burst. It proved to be unrepairable, so it was replaced with a similar model at a cost of $1,500.
In February 2023 a neighbour approached Meredith and showed her that the common fence between her townhouse and his was in very bad condition. They agreed to share the cost of a new fence. The new fence was to be of wood, like the old one, but new Council regulations required the new fence to be 2 metres high, while the old one was 1.5 metres high. Merediths share of the cost was $1,350.
To complete an expensive year for Meredith, water leakage in the bathroom required plumbing repairs. The work was done in June 2023. Meredith received the plumbers invoice for $2,250 in the last week of June 2023 and paid it in the first week of July 2023.
Required: Advise Meredith on the amounts she can claim as a deduction (in accordance with the Australian Taxation Office) against her rental income in 2022/2023?
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