Gutters and tax

[Theodore]

This F/Y coming to an end and like everyone looking to maximize deductions !

An IP I own needs new gutters as they have rusted out pre bad .

If i get them replaced and get the company to state on the invoice that the old gutters were in need of repair will the new gutters be written off or depreciated ?

Theodore

 

[pinkboy]

This F/Y coming to an end and like everyone looking to maximize deductions !

An IP I own needs new gutters as they have rusted out pre bad .

If i get them replaced and get the company to state on the invoice that the old gutters were in need of repair will the new gutters be written off or depreciated ?

Theodore

Capital expense. Depreciated.


pinkboy

 

[Rixter]

If i get them replaced and get the company to state on the invoice that the old gutters were in need of repair will the new gutters be written off or depreciated ?

Itemising the gutters as a repair and claiming the price you paid to replace them would be like waving a red flag at bull to the ATO. They are red hot on this stuff.

Its a capital expense and depreciated as such.

 

[Propagate]

Sorry to hijack, but in a similar vein, we're (well, the plumber) is currently digging up and replacing 30 meters of sewer drain as trees from the neighboring reserve have infested it, it's completely shot.

Excavating the garden, replacing 30 meters of sewer pipe plus all the fittings etc that go along with it, then back fill and clean up.

Would this be claimable in one hit, or also to be depreciated?

 

[depreciator]

It depends.

How long have you owned the place?

With the new gutters, if you have owned it and been renting it for ages, longer than ten years, your accountant would probably claim new gutters as a repair.

If it's a more recent purchase, no dice.

It's similar for the sewer line. If it's a recent purchase, putting a new line in is improving the property relative to the condition it was in when purchased.

 

[Paul@PFI]

This is a good example of the issue posed in another thread on SS..http://somersoft.com/forums/showthread.php?t=108336
dealing with Div 43 writ'-off deductiosn that are being missed.

the solution the QS agree is that a good QS may identify the residual value and valkue it so a deduction can be claimed. Maybe at no or minimal cost. A hidden benefit of using a good QS firm.

Perhaps your QS report needs to be edited and a scrapping deduction claimed for the old gutter. Then commence new Div 43 for the new guttering.

Its not a repair unless you are replacing a section.