Replacing clothesline in rental property

T

THR

Hello all,

I have a question with respect to replacing a clothesline at a rental property and wonder whether this could be considered repairs/maintenance, as opposed to capital works (and therefore, be fully deductible, instead of @ 2.5% per year).

Firstly, I have just acquired the property and my tenants are in the process of moving in.

Secondly, the existing clothesline in the property is in need of replacement (it's rusty and just generally broken). I am intending to replace it with an equivalent clothesline.

The cost for delivery and installation is just under $300.

Any thoughts appreciated :)
 
If you replace something like that in its entirety, it's 2.5%.

And of course, anything you do to a newly acquired property before renting it can't be claimed as repairs/maintenance.
 
'In need of replacement' = due for scrapping
Replace with similar standard of clothesline is repair/maintenance for the purpose of rental income.
Less than $300 allows write-off without depreciation.

I would just call it repair and write off the expense in one year.

:)
 
Thanks. The tenants are in there now and I'm replacing it (after they've signed the lease and moved in)...
Click to expand...

It's still not a repair. The clothesline was buggered when you bought the property. The damage did not occur while you were renting it out.
 
what did your depreciation report say about the clothesline, you know, the one you did when you bought the property?

Maybe its not too late to do one now?
 
depreciator said:
A Depreciation Schedule will not list a clothesline. The ATO regard it as part of the building, not an Asset.
Click to expand...
ree

I agree a clothes line is considered a division 43 cost, like structural improvements, and allows the 2.5% write-off.

It's not a division 40 uniform capital allowance decline in value, in which case up to $300 could have been deducted.
 
Thanks all for your assistance. I had a feeling this might be the case.

As a newbie, it's a bit silly to allow things like these to be deducted at 2.5%; the current one would be less than five years old, so it's not an item that is going to last forty years.
 
Yes, I think when the ATO have a clothesline in mind, they are still thinking of the old Hills Hoists that have outlasted many houses over the years.
 
a little off-topic - but which company were you going to buy the clothesline from? (One of my clients is a large online retailer of them) ;)
 
depreciator said:
Yes, I think when the ATO have a clothesline in mind, they are still thinking of the old Hills Hoists that have outlasted many houses over the years.
Click to expand...

I think my desire for the tax deduction outcome is before its time. Contemporary clothesline are more detachable and more disposable, hardly in line with the old hardy clothesline. :(
 
get a handyman to fix it and he could jsut invoice "repairs/maintenance" doesnt even need to mention clothesline!
 
not recommending it, just giving another option. as long as you can substantiate the invoice, why not. a lot of people do it out there! and im sure many on this forum do also


Rob G. said:
Why are you recommending a newbie to commit a fraud ?

Cheers,

Rob
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