Fence tax deductible?

[nathanael_87]

Hi,
Just a quick question. Have just recently bought a duplex (within 3 months) and need to look at fencing the place. Currently there is a old busted fence that separates the two units sip hick would be replaced, but there is no front fencing for the front unit so it's open to the street. If we replace the dividing fence, and put in the front fence will they both be tax deductible, and do we have to wait a certain amount of time to do it?

Thanks in advance
Cheers Nate

 

[Terry_w]

Replacing an old fence may be classed as a repair, but if you change the material and make it better then it may be an improvement. You could depreciated it. I think it would be classed as capital works?? check with your quantity surveyor or tax person.

 

[coastymike]

yep fences are capital works. 2.5%

structural improvements to the property-such as adding a gazebo, carport, sealed driveway, retaining wall or fence.

http://www.ato.gov.au/corporate/content.aspx?doc=/content/86193.htm

 

[PaulGTaxAdviser]

Fences

Mike is 100% correct. Fencing is never deductible even if replacing another fence. A repair that is deductible would be permitted for paling etc but not replacement, rejuvenation or similar. Its the old carpet issue issue with rentals... If old carpet is stuffed and is replaced its still capital expenditure. Repair involves a portion not the whole or a substation element and never improves.

Facts here suggest its an initial repair which is ALWAYS capital