Replacing entire fence, tax deductible

[cceasy]

Hi all,

I have an investment property where the 2 of the piers on the brick fence have collapse... I've spoken to 2 bfence repair place and they said they can repair but it will happen again... So to prevent any liability issues, I want to tear it down and replace the lot... Is this tax deductible?

 

[Tano]

No since its an improvement .
Replace it in parts and it will be tax deductible

 

[Ausprop]

the replacement, is it with the same materials etc? you want to entirely replace it with the same thing?

 

[cceasy]

If I had a choice I would replace... But they are saying the brick fence is poorly built and may collapse again and hurt someone... I have no choice but to rip it down and replace the fence with say colorbond...

 

[cceasy]

Basically no one is willing to repair it... One guy said he would but said it's going to happen again... So if I replace one part, another part might fall and hurt someone... I don't seem myself having much choice but to remove the entire lot... the repair a lone if someone is willing to do it would cost more than a new fence..

I was advised that they would need to excavate the foundation... put bigger piers and other stuff.. very pricey...

 

[cceasy]

I found another repair place... he's going to have a look to see if he can repair and quote me on it. I'm hoping he can repair all the piers to ensure it doesn't collapse on someone

 

[Holmes2012]

No since its an improvement .
Replace it in parts and it will be tax deductible

Do you want to explore if there could be an upfront deduction available for scrapping the old fence? eg if the depn report shows it has a tax depreciated value of $10k, can't you claim that in the year you scrap that asset?

Agree the new fence will not be an upfront deduction, but be depreciated over the life.

 

[Ausprop]

if the fence is beyond repair and is to be replaced like for like it should be fully deductible

 

[Rob G.]

if the fence is beyond repair and is to be replaced like for like it should be fully deductible

Not if you are fixing up a fault in the foundations.

 

[Paul@PFI]

if the fence is beyond repair and is to be replaced like for like it should be fully deductible

If its being replaced it's capital expenditure. Capital expenditure is not deductible.

 

[cceasy]

If its being replaced it's capital expenditure. Capital expenditure is not deductible.

Thanks Paul. I'm exploring ways to repair the fence, the foundations and bigger piers. that should be deductible right as it's not replace, it's repair

 

[Paul@PFI]

Thanks Paul. I'm exploring ways to repair the fence, the foundations and bigger piers. that should be deductible right as it's not replace, it's repair

I would imagine so. Just watch that the repairs aren't so extensive that its a replacement. I believe this issue occurs with roofing a fair bit.