I came across a gardening web site that mentioned plants could be expensed as a 100% deduction if used for an investment property. Anyone know anything about this? Any restrictions I should be aware of before I let myself loose at the nursery?
You can't really depreciate them if they are planted into the ground as they are improvements to the land rather than a capital or structural improvement. However if they are in pots then you may be able to claim them as a depreciable item. In either case, if you are only spending a small amount of money, your accountant may decide you can claim them as a general expense.
Well, if you just did some "gardening" then it would be ok to claim as an expense, based on the argument that you were simply maintaining the property (perhaps a tenant hadn't been watering the garden).
However, if you spent say 5k on landscaping, it would be difficult to argue that you were simply maintaining the property (unless tenants had trashed the place). So the expense would be added to the cost-base of the property, reducing your capital gain if you sell.
Sorry Terry I think you're thinking of an hydraulic ram. REminds me of the joke in Readers Digest several years ago where a farmer claimed depreciation on his hydraulic ram and the taxation office advised him he could not depreciate livestock. He wrote back and said well I suppose it's no use trying to depreciate my artesian bore
I believe the ATO will allow a full tax deduction if your a Kiwi living in Oz and claim the sheep as a spouse. More than two spouses and the ATO will become sus, so please be aware of this issue......As long as the sheep are grazing and not actually working you will be sweet.
Regards, J Gillard.......moving forward.................towards mutton dressed up as lamb.