Insurance claim. Do I declare as income?

Hi all
I had water damage to my propery and the insurance company paid for new kitchen cabinets $6750 direct to the builder. Landlord insurance paid me $1870 for a floating floor and I used the money to pay for it myself.

Do I -
1. Declare the $1870 as income and claim as depreciation(diminishing value), and not declare the $6750 and not claim deductions?

2. Declare both as income, and claim floor as diminishing value and cabinet as capital works.

3. Dont declare any as income and not claim depreciation on either.

4. Some other combination of the above.

Do I have a choice?

Thanks
 
Any insurance payout received should be included in your assessable income.

You can claim cost of the actual repairs as deductions to an extent - if substantial of structural repairs you cannot (and anything additional to repair work you cannot), these would be capital in nature and claimed over their useful life (depending on the work in question).

As to the issues above, suggest you confirm with tax advice. My guess is that repairs for both should be claimable upfront... but I am no accountant.
 
Any insurance payout received should be included in your assessable income.

You can claim cost of the actual repairs as deductions to an extent - if substantial of structural repairs you cannot (and anything additional to repair work you cannot), these would be capital in nature and claimed over their useful life (depending on the work in question).

As to the issues above, suggest you confirm with tax advice. My guess is that repairs for both should be claimable upfront... but I am no accountant.

I understand i cannot claim all in the 1 year and must depreciate the costs because I replaced the whole floor (15year life). And the kitchen cabinets are a capital works deduction.

But do I need to declare as income the value of repairs the insurance company paid for? There was $6750 worth of kitchen cabinets replaced. I did not recieve money just new cabinets.
 
I understand i cannot claim all in the 1 year and must depreciate the costs because I replaced the whole floor (15year life). And the kitchen cabinets are a capital works deduction.

But do I need to declare as income the value of repairs the insurance company paid for? There was $6750 worth of kitchen cabinets replaced. I did not recieve money just new cabinets.

Not at accountant, but I would expect this to be the case:
  • Insurance pay out as assessable income
  • Remaining non-depreciated value of the damaged floor and kitchen as an expense unless already totally written off from years of depreciation
  • Usual depreciation schedule for the new floor and cabinets (some adjustment/pro-rata for the partial year)
 
I understand i cannot claim all in the 1 year and must depreciate the costs because I replaced the whole floor (15year life). And the kitchen cabinets are a capital works deduction.

But do I need to declare as income the value of repairs the insurance company paid for? There was $6750 worth of kitchen cabinets replaced. I did not recieve money just new cabinets.

no i dont believe so, only what the insurance paid you out for in cash.
 
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