Polished concrete / epoxy

[heroine]

Ok so this is ultimately a question for the tax man... But maybe someone here knows.

I am looking to Reno a rental with carpets. They are nearing the end of their life.

I understand that if I rip up the old ones and put in new ones my tax benefit will be the write-off of the old (as per Deppro report) plus the depreciation of the new one (over 10 yrs)

Now I read that if I was to remove the old one and polish floorboards that would be a repair and all would be immediately expensed. Only that I don't have floorboards. It's a concrete slab.

So if I rip out the carpet and polish the concrete is that a repair? The result will look like this

 

[heroine]

http://www.houzz.com/photos/1322651/Fit-for-a-McQueen-modern-bedroom-philadelphia

 

[MRO]

I don't think it would be a repair.

Wood floors get damaged and worn through use. The concrete floor is covered and has not be worn out through tenant use. Polishing concrete is a capital improvement in my opinion.

 

[depreciator]

Wood floors get damaged and worn through use. The concrete floor is covered and has not be worn out through tenant use. Polishing concrete is a capital improvement in my opinion.

That's not exactly what she was saying. There is an ATO ID (Interpretative Decision) where somebody took up carpets and polished the floor and were able to claim it as a repair.
It's similar to taking up carpets and polishing a concrete floor - though the concrete floor was never intended to be a useable surface, unlike floor boards.
Heroine, you won't get an answer on the phone. Apply for a Private Ruling. It's a very easy thing to do. I just received one and it took under 4 weeks. In your application, you would refer to the floorboards Decision:

http://law.ato.gov.au/atolaw/view.htm?docid=aid/aid2002330/00001

 

[heroine]

Heroine, you won't get an answer on the phone. Apply for a Private Ruling. It's a very easy thing to do. I just received one and it took under 4 weeks. In your application, you would refer to the floorboards Decision:

http://law.ato.gov.au/atolaw/view.htm?docid=aid/aid2002330/00001

Genius! Thank you!

 

[heroine]

Thanks again, I received my private ruling in the post today (it only took them 3 days) and the answer is yes

Expense deductible in the given period.

http://www.houzz.com/photos/2626733/Julie-Charbonneau--Montreal--QC-industrial-living-room-montreal

 

[depreciator]

Good to know. Thanks for letting us know the outcome.