shade sails - deductions

[mitta]

Are thinking of having installed a shade sail structure over the driveway and a portion of the front pathway to house. It will be professionally done and attached to the house at several points.

Would I be correct in thinking that as a tax deduction it would qualify as capital works and be reduced at 2.5% per annum ??

Mark

 

[Rolf Latham]

Hiya Mark

I suspect you might be right, though I have no real idea.

Whats funny about that though is..........shade cloth that lasts 40 years is as stupid a concept as a paint job that lasts 40 years...........but then again its the ATO we are talking about who have magical powers to make things that happenedn NOT happen

Ta

rolf

 

[Rixter]

Whats funny about that though is..........shade cloth that lasts 40 years is as stupid a concept as a paint job that lasts 40 years...........but then again its the ATO we are talking about who have magical powers to make things that happenedn NOT happen

Rolf, Good Point!

 

[duncan_m]

Are thinking of having installed a shade sail structure over the driveway and a portion of the front pathway to house. It will be professionally done and attached to the house at several points.

Would I be correct in thinking that as a tax deduction it would qualify as capital works and be reduced at 2.5% per annum ??

Mark

I'd class it as a fixture/fitting and depreciate it over its effective life.. its doesnt seem that different from curtains and blinds..

 

[mitta]

Thanks guys for the replies, it might be depreciated at different rates , say 2.5% for the cost of installation and footings/posts and a larger rate for the shade sail material itself. I have just emailed our quantity surveyor that did our depreciation reports several months ago, will post to this tread when something turns up.

Mark

 

[Rolf Latham]

Hiya Dunc

Effective life of a paint job is 40 years I have been told by a quantity surveyor

ta
rolf

 

[Rixter]

Effective life of a paint job is 40 years I have been told by a quantity surveyor

Some one just needs to tell the paint manufacturers to produce it now!

 

[depreciator]

Internal paint properly applied on a surface well prepared can last a long time. If it is damaged, then it's a 'repair'.

The ATO views shade/sail things as 'building' i.e. 2.5%. I doubt whether they have really thought about the poles vs the cloth. You can make your own determination of effective life (and therefore depreciation rate) if you can provide some reasoning.

Of course, when the cloth does fail, replacing it will be a 'repair'.

Scott

 

[mitta]

Thanks Scott, Got a reply from our QS and exactly as you have stated it will be 2.5% .


" Unfortunately the extensive list for plant & equipment items does not
have any items or categories that a shade sail can come under. The ATO
has not assigned a specific effective life for this item and therefore
to be depreciated it would fall under division 43 or 2.5% write off. "


Mark