Bit tricky..maybe

Hi all,

just a quickie...

Existing IP for aprox 7yrs
Changeover of tenants and stairs and joining room to stairs had carpet replaced with not exactly same carpet (no longer avail) but one very similar.
Previous carpet was worn out and badly stained.

Capital deduction or repairs...?

I'm guessing capital but just checking in here first.;)
You're gonna have to depreciate it.
But, you can claim the scrap value as a deduction, but only if the carpet isn't in your Low Value Pool.
For example, if it has a WDV of, say, $500, then you scrap it and replace it with new carpet, you depreciate the the new stuff and claim the $500 in the currect year.
That's my (non-deductable) 2 cents worth.
Yep, Capital.

Could the tenants have survived in the rental without new carpet? Tick.
Was the property unliveable while the old carpet was still there? No.

You claim that 2c + my 2c!:D

Regards Jo