Repairs don’t offset GST

THE writer of the letter “Keep house repair bills to offset GST” (Weekend Argus, May 13) has been grossly misinformed.

To my knowledge, expenses on repairs and routine maintenance to one’s residential property are not taxdeductible when calculating GST.

Any expenses related to alterations, additions and improvements to a property, which enhance the value of the property, may be taken into account for GST purposes when disposing of the property. All such invoices must therefore be retained. If property is rented for the generation of income then all maintenance and repair costs are considered operating expenses and may be offset, for income tax purposes, against income received; this has nothing to do with Capital Gains Tax. Correct me if I’m wrong.