Capital or expense??

From: Lucinda Hudson


Hi

I have an older IP which I now have to have connected to deep sewerage from septic, which is going to cost about $2000. Does anyone know how this is treated in the accounts? I have rung the ATO but they really do not seem to know.

Any ideas?

Lucinda
 
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Sim

Administrator
Reply: 1
From: Sim' Hampel


While I am no expert, and this is certainly not advice... to me it doesn't really smell like a repair.

You are not fixing ("making good") something which does not work. You are improving the property. Capital I'd guess.

If you find a way of convincing the ATO otherwise I'd be delighted to hear !

 
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Reply: 1.1
From: Dale Gatherum-Goss


Hi

I agree, it will be a capital item and not a repair. Sorry.

Dale
 
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Reply: 1.1.1
From: Lucinda Hudson


Hi

The ATO have rung me back - yes it is capital but state can be depreciated over 40 or 25 yrs. At least that will give me $50 per year to depreciate!

Lucinda
 
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