After having a service on my ducted heating unit, it seems as if an animal, namely my partners dog, has destroyed or at least pierced most of the ducts under the house. A quote has come back of $2135 to replace
Now, my initial thoughts are that this must be depreciated as its a replacement not a repair of the existing ducts
However, would the ATO view the ducts separate from the actual unit and therefore a replacement and depreciable. Or would they view ducts and the actual heating unit as one item and therefore the cost of the ducts is repairing this 'one' item and therefore an expense?
Now, my initial thoughts are that this must be depreciated as its a replacement not a repair of the existing ducts
However, would the ATO view the ducts separate from the actual unit and therefore a replacement and depreciable. Or would they view ducts and the actual heating unit as one item and therefore the cost of the ducts is repairing this 'one' item and therefore an expense?