Hi. Was hoping someone could advise me what expenses could be deducted or depreciated in the following example.
If you have a rural investment property, say 5 acres, and you rent it out furnished, then the buildings and contents can be depreciated. If you supply a lawn mower that can be depreciated. You can deduct the cost of a gardener. But what about a ride-on mower, or a tractor, or maintaining or adding a dam, irrigation or an apple orchard? If other pursuits on this land don't meet the criteria for being a legitimate farming enterprise, and therefore cannot be deducted from the owners professional income, could they be considered as maintenance of the rural investment property and be deductible from the owners other sources of income (assuming the apple orchard is loss-making)?
Any ideas?
Cheers in advance.
If you have a rural investment property, say 5 acres, and you rent it out furnished, then the buildings and contents can be depreciated. If you supply a lawn mower that can be depreciated. You can deduct the cost of a gardener. But what about a ride-on mower, or a tractor, or maintaining or adding a dam, irrigation or an apple orchard? If other pursuits on this land don't meet the criteria for being a legitimate farming enterprise, and therefore cannot be deducted from the owners professional income, could they be considered as maintenance of the rural investment property and be deductible from the owners other sources of income (assuming the apple orchard is loss-making)?
Any ideas?
Cheers in advance.
