Kitchen Refurbish

[Petergm]

We have a rental property which we would like to refurbish the kitchen and bathroom/toilet at the conclusion of the current 12 month lease.

What sort of tax claim are we able to make for replacement kitchen cupboards/benchtops? Are these depreciable?

Are we able to claim depreciation on the replacement of linoleum with tiles?

[WillG]

If you are replacing the kitchen rather than 'repairing' it you will be able to depreciate it over 20 or 40 years (not sure which one is correct). Items such as exhaust fans, cooker, garbage disposals, hot water systems and some floor coverings etc can be depreciated over a shorter period (This includes the installation cost - get your electrician to itemise the cost of installing such items). The ATO site (www.ato.gov.au) has guidelines about such things.

The toilet will probably be depreciable over 20 - 40 years.

NOTE: I am not an accountant and are going of memory.

It may be worth while getting a quatity surveyor to do an exact depreciation schedule - depending on the cost of the kitchen & toilet

Cheers

[Mry]

We have a rental property which we would like to refurbish the kitchen and bathroom/toilet at the conclusion of the current 12 month lease.?

First up, some questions-

1. How long have you owned the property?
2. Do you plan on making it available for rent after the refurbishment?
3. What was the state of the kitchen when you purchased the property?
4. Will the kitchen have a brand new layout with cupboards moved around, new materials etc? How much of a refurbishment are we talking about here? Is it more of a replacement or an improvement?

[Petergm]

First up, some questions-

1. How long have you owned the property?
2. Do you plan on making it available for rent after the refurbishment?
3. What was the state of the kitchen when you purchased the property?
4. Will the kitchen have a brand new layout with cupboards moved around, new materials etc? How much of a refurbishment are we talking about here? Is it more of a replacement or an improvement?


It is currently tennanted with a 12 month lease.
Yes, it will be available for rent after the refurbishment.
The kitchen is currently ok ..... but is a little tired
We would like to alter the layout to make it more useable
We would install new cupboards and benchtops as the current ones would not be able to be refurbished due to wear and tear.
We would be replacing the existing cupboards and the linoleum with tiles (the floor coverings need replacing)

[Mry]

What I mean is, how long have you owned it? 5 years? 3 years?

What was the state of the kitchen when you bought it? Was it a brand new kitchen when you bought the house or was it complete garbage?

We need to know how run down the kitchen has become over the time you have owned the house.