I was told that I could claim the costs of preparing my house to be rented, in my income tax. So I went ahead and paid for the place to be cleaned, an electrical safety check, electrical appliances serviced, servicing gas appliances, pest control.
Anyway I gave my accountant all this information and she's telling me these are capital items and they will come off capital gains tax when I sell the property? I don't get it.
I built the property in 2009 and was an owner occupier until April this year when we moved and I rented the property out.
She hasn't included any depreciation and maintains that the items I listed above are capital because they were "initial repairs".
I've been reading on the ato website and initial repairs seem to be about repairs you do to a recently acquired property but my property isn't newly acquired. I've had it 7 years!
Anyway I'm clearly not understanding and wondering if one of the accounting hubbers can explain it to me in a way I can understand!