Depreciate or write off?

[alexlee]

Just a quick question. There was some water damage to a bathroom in one of my IPs. The plumber found that:

"Investigation revealed that the water is escaping between the shower curtain and the wall due to the shape of the bath. It is our recommendation that a half screen be fitted onto the bath to combat the problem. Price to supply and install a half shower screen at the bath is $550. We have allowed for all labour and hidden materials for the installation of the shower screen, but excluded any painting or plastering. We trust the above meets with your approval and await your valued instructions"

Would you consider this a repair or capital? Thanks!
Alex

[Jamie]

Repair.

The problem resulted in damage to the bathroom - if there was damage, then you were simply rectifying a fault....

Jamie.

[WashingtonBrown]

I would argue that the price be broken into two components.

1. Any repair work that is needed to fix the existing water damage - this would be deductible.

2. The cost of the installing the shower screen. This would be depreciable as it seems like a capital improvement to me.

However, as you only have one price....you may decide to claim it as an outright repair...

Regards