Another What is a Repair Question

[TheBacon]

Hi all,
Currently in the middle of a complete gut and refit of the kitchen and bathroom in my IP.

There was some existing damage and wear and I plan to claim some of it as a repair:

• Damaged and lifting tiles in bathroom (repair 1 wall);
• Paintwork in kitchen and bathroom;

Some things I am not sure about…

• Replacing the bathtub. There was a leak from the bath waste (contributing to rising damp). We have ‘fixed’ this by replcing the bath, can I claim this as a repair or is it a replacement (i.e. depreciate only). We haven’t altered piping for this, but have changed the orientation of the bath…
• The taps in the kitchen were worn (but not broken), can I claim the replacement taps as a repair cost?
• Bath/shower taps were worn, we replaced them but in a different spot – repair?
• Replace crappy old worn light fittings in bath and kitchen?

Probably NOT repairs…

• We took out the horrible small existing bathroom window and put in a much bigger one – the old window was too small and pretty ugly but I don’t see how this is a repair.
• Took out old wood stove and installed new elec/gas. Old one was in working order, but probably not used since 1960. I would consider something that can’t be used as ‘broken’, but this is probably not a repair in the ATO’s eyes.
• Replaced worn old kitchen cupboards
• Replaced kitchen sink
• Replaced bathroom vanity, but put it in a different spot
• Added new toilet into bathroom where previously there wasn’t one. I challenge anyone to find a legitimate way to claim this as a repair J
• Added a dishwasher – again, same challenge J
• Bashed out some bricks from the existing fireplace in kitchen to allow for overhead cupboards and extractor to be installed over oven/cooktop.

Can I depreciate the items I claim as a repair?

I better stop typing now…

TB

 

[depreciator]

Playing things straight down the line....

Replacing the bathtub. There was a leak from the bath waste (contributing to rising damp). We have ‘fixed’ this by replcing the bath, can I claim this as a repair or is it a replacement (i.e. depreciate only). We haven’t altered piping for this, but have changed the orientation of the bath…

Changed the orientation? Sounds like an improvement.

The taps in the kitchen were worn (but not broken), can I claim the replacement taps as a repair cost?

Bunged in nicer taps to replace old ones? Sounds like an improvement.

Bath/shower taps were worn, we replaced them but in a different spot – repair?

Newer taps in a different position? Ditto.

Replace crappy old worn light fittings in bath and kitchen?

Nice new fittings? Ditto.

The above is conservative and you can obviously argue the toss with some things because it's not always black and white. The important thing in chatting with the ATO is to have a precedent to reference. I always find the ATO very reasonable when I've done some homework before talking to them.

Can I depreciate the items I claim as a repair?

Nope. That would be double dipping i.e. claiming back the cost twice.

Scott

 

[TheBacon]

Thanks Scott - straight down the line is fine with me. I have trouble remembering the truth, let alone some half-truth

Still no takers on how to claim a new dunny and a dishwasher as a deductable expense in this financial year ???

TB

 

[depreciator]

Sorry, missed those ones.

The dunny = capital improvement @ 2.5% - bummer.

The dishwasher is an Asset so it will depreciate more quickly. But it's not an expense.