The recent storm experienced by Brisbane residents has created a mill of enquiries and claims to insurance companies as repairs to damaged homes in the wake of it are now underway.
Image Property is no stranger to this line of enquiry as stressed tenants and landlords alike contact us to seek assistance.
This is where the expertise of our experienced and trusted property management team has shone through.
Storm damage, whilst in the short term may create havoc and destroy property, can also be embraced as an opportunity to upgrade and be able to legally claim not only from your insurance company but also the tax man.
You are well within your rights, should any part of your property be inundated with water or destroyed by other means such as fire, to claim compensation for expenses incurred to repair and or rebuild any part of that property as well as any loss of rent that may ensue.
Please bear in mind that this is not completely money for nothing and all income including insurance monies must be declared.
Repairs to Damages Generally Means an Upgrade
Take for example that the ceiling in your kitchen has been damaged due to gale force winds. This would create a flood that destroys aged cabinets and well used electrical appliances.
You will be able to install brand new modern cabinets and appliances and legally claim for these expenses by way of insurance. You will also gain a depreciating tax deduction on these new items. This is provided the property was rented at the time of the disaster.
Also, you need to know that you cannot knock down a wall and increase the size of the kitchen, as this becomes an enhancement, which attracts another set of rules revolving around capital improvements.
By all means, if it is your desire to enhance the property, this would be the time to take that opportunity as at least a partial claim can be made and compensated for.
Likewise, if your fence was obliterated in the high winds or panels were peeled off your shed walls you are able to repair these items with the new equivalent, thus making your home new!
Get it Straight From Experience and Knowledge
It is always recommended that you consult with your accountant and discuss any improvements and or repairs to damages that may need to be carried out to ensure you are working within current legislative confines and requirements.