Plumbing depreciate or cost base?

[Theodore]

Hi guys about to settle on IP

The bathroom has no plumbing hooked up
To vanity !

My question is :
will be plumbing works be depreciated
or added to cost base ? Been quoted $950 for the job

Theodore

 

[syba]

It isn't a depreciable asset and not a repair. It is a capital item and can be written off over 40 years, ie 2.5% pa.

 

[datto]

Theo, I had a similar problem when I bought a unit. I had no plumbing from vanity to hole in floor and the place was fully renovated (shonks! always check everything when buying incl taps, toilets etc). I fixed it myself with a piece of PVC pipe.

How much pipe is missing? See if you can DIY and save. lol 2.5 % x 950 = zip.

 

[Paul@PFI]

Its usually at this point someone asks...Isnt the lack of plumbing a defect and so Im fixing it? Its a repair isn't it ?

No. Its an improvement.

 

[Theodore]

Thanks Paul, Datto , syba

Yes had originally thought was an improvement

And yeah I did know about the plumbing before a bought has
And beleive me I did factor it in the price

http://m.realestate.com.au/property-house-nsw-raymond+terrace-118605367

 

[datto]

You're a smart man Theo !