Replace small extension room roof due to leaking

Discussion in 'Accounting and Tax' started by evisional, 16th Jun, 2015.

  1. evisional

    evisional Member

    Joined:
    2nd Nov, 2007
    Messages:
    434
    Location:
    Melbourne
    Tenant complained that my small extension room roof is leaking. As the old roof color bond is too old to keep. The handy man replaced the leaking roof with new color bond sheets. Total cost including labour is $2100. Is this considered as maintenance cost? Can I claim tax for this F/Y or I have to allocate the cost for years?
     
  2. Paul@PFI

    Paul@PFI Tax, SMSF & Planning

    Joined:
    2nd Jul, 2013
    Messages:
    2,778
    Location:
    Sydney
    As all of the roofing sheets were replaced its difficult to answer. It could be a replacement and that would be capital expenditure. However if a portion of the roof was the issue it may be deductible. Since the section on the extension may have its own roof it may be a replacement rather than if the whole roof was similar colourbond. Personal tax advice is needed.