Initial repairs, ATO, and what's allowed are often asked when you acquire a new rental property with existing known repairs. The old house might need fixing before it can be rented. Initial repairs may include tasks such as plumbing, painting, new carpet installation, or appliance repairs, to name a few. Initial repairs are those made to a property: Before it is first rented out, or To remedy defects or damage that existed when the property was acquired (even if repairs are carried out later). Why Are They Not Deductible? 1Capital vs Revenue Expenditure The Australian Taxation Office (ATO) classifies initial [...] READ MORE