Property Tax Allowances

[WebBoard]

From: Anonymous


I have recently had security film (on windows) and security screen doors fitted to an investment unit.
Can somebody tell me if these are rightly classified as "plant" or "structural improvements" for the purpose of determining if they are subject to a depreciable plant or a capital works deduction?

 

[paulzag]

Reply: 1
From: Paul Zagoridis


I can't say as I am not qualified nor insured to give that sort of advice.

Your accountant is the best person, if your accountant understands tax and property investment.

I'd ask my accountant under what circumstances would it be repairs and maintenance?

Paul Zag
Dreamspinner
Oz Film Biz is at
http://www.healey.com.au/~paulz

 

[DaleGG]

Reply: 2
From: Dale Gatherum-Goss


Hi

If the cost is relatively minor, then we can treat the items as an immediate expense. Likewise, if the items have only a very limited lifetime.

However, if the cost is over $300 then we would probably end up depreciating them over their effective life.

I hope that this helps

Dale

 

[WebBoard]

Reply: 2.1
From: Sergey Golovin


Is it in rental agreement (contract) says somewhere that amount less then $500 will acceptable as minor repairs and will refunded same year?

Or is it when tenant does minor repair’s him selves and then asking money back from landlord?

Tenant does repair’s and landlord claims deductions? I might be wrong.

Serge.

 

[Mike]

Reply: 2.2
From: Mike .


Hi Dale,

You said: "If the cost is relatively minor, then we can treat the items as an immediate expense. Likewise, if the items have only a very limited lifetime.

However, if the cost is over $300 then we would probably end up depreciating them over their effective life."

This would be so if the items were plant. Unfortunately, security doors and screens are non-depreciable as plant.

I would say that doors are a structural feature and that security film is a capital improvement to a window which is also a structural feature. Therefore, I would say that those items can either be added to the cost base or depreciated under the capital allowance provisions.

Regards, Mike

 

[DaleGG]

Reply: 2.2.1
From: Dale Gatherum-Goss


Hi Mike

You raise an interesting thought and one that I will consider. Thank you.

Cheers

Dale