rental costs after rental ceases

[petergibbinson]

Portfolio of 7 rental properties...1 ceases to be a rental property after 6 years rented out, In March of this year (and becomes main residence again) Others remain rented out.
Assorted works need to be done (including decorating, replacement shower cubicles, roof repair and ceiling repair from leab in roof) to former rentla now main residence... some works still ongoing and likely to be completed in next month or so.
All work would have been carried out if property had continued to be rented out, but due to change in circumstances now main residence again. Are the timescales reasonable? Rental business still continuing so goes against overall business.
Do I err on the side of overly cautious? (i.e leaking shower damaged tiles and wall behind... so entire en suite bathroom needed replacing..is this a reasonable expense?)

[pawncob]

It's that little word "IF" that causes the problem. It's now your PPR and the maintenance costs are your responsibility. (NO TAX DEDUCTION)

[petergibbinson]

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)

[pawncob]

If you submit rental income as an estate return, you could include it, but it's still open to question.

[section 44]

roof repair

Was this the tenant's damage?

[petergibbinson]

property taken back from tenant in march this year...on getting the property back water damage to bedroom ceiling and shown to be damage to roof and chimney flashing. This damage relates to the period of the tenancy..not the tenants fault but didnt tell me, and hence I need to repair.
This repair relates to the rental..if it was rented out again it would be allowable costs.
I think peopel are missing the point..any repairs have to be solely and exclusively relating to the rental. I still have a rental business this property has just fallen outside that business now...bu this repair relates to the period of rental.

Let me give another expample January of this year I start an insurance claim for water damage to the property...and the insurance company pays out in September this year (not unusual)...that is income, and needs to be included in my rental calculations...or I had a deposit dispute that finally paid out in July of this year...once again income.
The receipts (this income) are taxable..and hence any costs relating to the rental (expenses) even if post cessation, are allowable..as I still have a rental business these expenses are allowable against other rental income.

It is impossible at the end of a tenancy to get all the work done, before the tenancy ends...maintenance and repair work often isnt obvious until the check out.

[section 44]

shown to be damage to roof and chimney flashing

did that damage only occur during the period of letting (i.e. what was the condition of the roof and chimney flashing before letting)?

[petergibbinson]

thats the million dollar question...but as it was rented continuously for 6 years...and the damage showed up on checkout of the final tenancy, I think there is a good argument the damage occured during those 6 years and not before..

[King_Maker]

If the items can be estimated with a reasonable degree of certainty, it might be possible to accrue for this expenditure in the relevant accounting period.