Need some Advice - Asbestos

[sarchibald]

Gday everyone,
Just a quick one. We have had a problem in one of our rental properties. The tenant had an accident and has put a whole in the wall. We got someone in to check it out to get repaired and they have found that the walls are made from asbestos fibre board.
We need to get this fixed and have had the asbestos removed. We are in the process of re-plastering the house due to the asbestos.
heres the question can we claim all of this on tax as it is a repair.

Info would be great

steve

 

[BV]

sarchibald
I am supecting that the ATO will see this as an improvement as you have updated
all the material used in the property, something similar to a renovation.
IMO for it to be a repair you should have changed the sheet that was broken.
An improvement can be depreciated.
Cheers

 

[julia]

Even if it is an improvement you can still claim all of the expense as a tax deduction as enviromental protection activities refer section 40-755 to 765 and ID 2004/720

 

[Twitch]

Even if it is an improvement you can still claim all of the expense as a tax deduction as enviromental protection activities refer section 40-755 to 765 and ID 2004/720

Julia, would it still be 100% deductable in the first year even if it hadn't been damaged but the landlord decided for whatever reason to remove the asbestos?

 

[julia]

Yes.......

 

[sarchibald]

Thanks Everyone that info is fantastic.

 

[sarchibald]

Also do you have a link Julia to the reference
Cheers
I have tried a search but cannot find the exact section you provided

thanks again

 

[julia]

http://law.ato.gov.au/atolaw/view.h...N 40-755 Environmental protection activities;

http://law.ato.gov.au/atolaw/view.h...ons from environmental protection activities;

http://law.ato.gov.au/atolaw/view.htm?dbwidetocone=09%3APLR%3ATaxation%3AINCOME%20TAX%20ASSESSMENT%20ACT%201997%3ACHAPTER%202%20LIABILITY%20RULES%20OF%20GENERAL%20APPLICATION%3APART%202-10%20CAPITAL%20ALLOWANCES%26c%20RULES%20ABOUT%20DEDUCTIBILITY%20OF%20CAPITAL%20EXPENDITURE%3ADivision%2040%20Capital%20allowances%3ASubdivision%2040-H%20Capital%20expenditure%20that%20is%20immediately%20deductible%3AOperative%20provisions%3A%2300008%23SECTION%2040-765%20Non-arm's%20length%20transactions%3B

http://law.ato.gov.au/atolaw/view.htm?dbwidetocone=05%3AATO%20Interpretative%20Decisions%3ABy%20Year%3A2004%3A700-799%3A%230720%23ATO%20ID%202004%2F720%20-%20Capital%20Allowances%26c%20environmental%20protection%20activities%20-%20lessor's%20expenditure%20demolishing%20shed%20constructed%20of%20asbestos%3B

 

[sarchibald]

Thanks Julia much appreciated

 

[battle on]

Hi Julia,

So what would be the situation if I was to have a old built in wood heater removed and a heat pump put in its place would any of this come under the enviromental protection activities sections you talk about?

Thanks

 

[kaf]

Ah - that's very interesting: we'll have asbestos gutters removed so that will be a deduction this financial year?

Thanks

Kerstin

 

[julia]

Battle On

If absetos removal costs not a problem but you would have to depreciate the new pump