Question about asbestos, painting and tax...

[wylie]

If asbestos sheeting was removed by professionals I understand this cost can be claimed in total in the financial year it is done. What about the cost of the re-sheeting of the walls where the asbestos was removed. Does this cost become a capital work to be depreciated over time? Or, because it was required as part of the removal of the asbestos, can this cost also be claimed in one year?

Likewise, painting of a house that has been tenanted for 15 years and needed painting. Is this claimable in the one year, or is it depreciated over time?

Our accountant will be doing our books, but my brother is keen to know this for getting things ready.

 

[depreciator]

What about the cost of the re-sheeting of the walls where the asbestos was removed. Does this cost become a capital work to be depreciated over time?

I reckon.

Likewise, painting of a house that has been tenanted for 15 years and needed painting. Is this claimable in the one year

I reckon 15 years is plenty long enough for a repaint to be claimed as a deduction.

 

[coastymike]

environmental protection deduction s 40-755. see PBR re the same issue

http://www.ato.gov.au/rba/content/?ffi=/misc/rba/content/1011324805791.htm

 

[depreciator]

Removal AND replacement - 'with its modern equivalent'. That's a good Private Ruling to know of - thanks Mike. I've got my eyes on a building I want to buy that has an asbestos roof.
Just be careful not move the position of walls or reshape roofs or anything like that lest the work be viewed as an 'improvement'.

 

[marks]

I had to repair a leaking & rusted cast iron bath in a 1950s house. The wet areas were sheeted in Asbestos. And the bath was built into these walls. I had it all removed and resheeted. I left the masonite roof in place to show I wasn't aiming to improve it.
I'm putting this in the tax claim as a repair under advice I had a the time.
I'll be working with the accountant on this in the next few weeks.

I feel it should be viewed repair because of the safety issue. Especially if you knew about it and did nothing.
That ruling seems to be agreeing with that view because of the environmental issues it causes to the income producing asset.

Cheers

 

[marks]

I've got my eyes on a building I want to buy that has an asbestos roof.

I know a investor targeting these homes. Great negotiation tool and instant way adding value in rentals. Most of these roofs have damage that trades people won't touch as well!