Postby petergibbinson » Mon Aug 04, 2014 6:34 pm
yes but these repairs relate solely and exclusively to the rental (i.e the walls were damaged by tenants, the shower damaged by tenants) as such they relate solely and exclusively to the rental and hence should be deductable.
Example...tenant puts holes in walls, wrecks a property causes 15k of damage..discovered when they leave the property.
You then move into the property as a main residence, those costs relate solely and exclusively to the rental and are deductable.
IT would work the other way as well...if you received an insurance payout or deposit return several months after the rental finished that still counts as income...it has to work both ways (income and or expenditure)
The fact it is main residence now, let out again, or left empty is irrelevant if the costs incurred relate solely and exclusively to when the property was rented (i.e the damage was done then)