Hello, I have a few questions about an investment property.
1. Can capital works items (eg Built-in robe, rainwater tank) be included in the low-cost pool if the cost is under $1000 or is that only for non-capital works assets?
2. If a rainwater is rusty and leaking would a replacement tank be considered a repair or would it be a capital work? (It is significantly rusting through in the top third and non-repairable)
3. Same as number two except for a stump (footing) that needs a wedge put in (as the downpipe just leaked on to the ground which has subsided a little). Is this repair or capital? If it was like it at the time of purchase prior to becoming a rental what is the ruling on that?
I have read the ATO literature on rental properties and I am not certain on the ruling.
Thanks in advance.
Bec
1. Can capital works items (eg Built-in robe, rainwater tank) be included in the low-cost pool if the cost is under $1000 or is that only for non-capital works assets?
2. If a rainwater is rusty and leaking would a replacement tank be considered a repair or would it be a capital work? (It is significantly rusting through in the top third and non-repairable)
3. Same as number two except for a stump (footing) that needs a wedge put in (as the downpipe just leaked on to the ground which has subsided a little). Is this repair or capital? If it was like it at the time of purchase prior to becoming a rental what is the ruling on that?
I have read the ATO literature on rental properties and I am not certain on the ruling.
Thanks in advance.
Bec