A Question About a Burst Water Pipe

Discussion in 'Accounting & Tax' started by Leilah, 11th Oct, 2017.

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  1. Leilah

    Leilah Well-Known Member

    Joined:
    14th Dec, 2016
    Posts:
    59
    Location:
    ACT
    Hi All

    A quick question. The manager of my investment property reported that there was a burst water pipe and that she had a plumber quote me $1,500 to fix it. Can I:

    a. Pay for the repair/replacement of the pipe from my investment loan and then claim the interest on the loan as a tax deduction?; and

    b. If point a is allowed, can I then simultaneously claim the expense of fixing and replacing the pipe as a tax deduction? Or would this be a capital expense?

    Look forward to hearing your responses and thanks in advance!

    Leilah
     
    Leilah, 11th Oct, 2017
    #1
  2. Ross Forrester

    Ross Forrester Well-Known Member

    Joined:
    30th Oct, 2016
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    2,085
    Location:
    Perth, Western Australia
    Yes.
    Yes.
     
    Ross Forrester, 11th Oct, 2017
    #2
  3. Handyandy

    Handyandy Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    651
    Location:
    Sutherland
    Burst water pipe is normally covered by your (or strata) building insurance. It would depend on what your excess is as to whether you would bother claiming.

    If you pay for the repair, it is a repair and should be fully claimable.
     
    Handyandy, 11th Oct, 2017
    #3