Big IP repair and reno job - what is full claimable now vs depreciation

Discussion in 'Accounting & Tax' started by KayTea, 18th Oct, 2017.

Join Australia's most dynamic and respected property investment community
  1. KayTea

    KayTea Well-Known Member

    Joined:
    10th Aug, 2015
    Posts:
    1,204
    Location:
    Inside my head
    Recently, had to get a lot of work done to a property. Some of it was clearly repair work (holes in walls replastered, replacing missing towel rails), and some was replacing stuff that was very old/in bad condition, and was going to make it harder to re-rent (eg. all the verticals were 'growing' with food spillage and goodness knows what else).

    Does everything just now go onto the depreciation schedule for the next tax return, or can some things be claimed in full at the end of FY17-18?

    For example - new curtains were put in. There is the cost of the curtains themselves, plus the purchase of all the rods, brackets etc (each item, on it's own, was small e.g. < $50).
     
  2. Mike A

    Mike A Well-Known Member

    Joined:
    24th Jun, 2015
    Posts:
    2,656
    Location:
    UNIVERSE
    Sounds like

    1. Some repairs
    2. Some into low value pool
    3. Some into capital allowances
    4. Some into capital works

    Either depreciator or bmt worth giving a call to discuss

    What about a scrapping schedule ?
     
  3. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    23,319
    Location:
    Sydney
    Depends when it was acquired too
     
  4. KayTea

    KayTea Well-Known Member

    Joined:
    10th Aug, 2015
    Posts:
    1,204
    Location:
    Inside my head
    Thanks ..... (I'm reading your response as "it's going to be messy and complicated"). I'm expecting that I'll just send the invoices etc to Depreciator (they do my annual schedule update) for the depreciable stuff, but I want to know what to include in my own property management spreadsheet for the accountant for next year's tax time.
     
  5. Mike A

    Mike A Well-Known Member

    Joined:
    24th Jun, 2015
    Posts:
    2,656
    Location:
    UNIVERSE
    If depreciator update the schedule with your invoices then should be easy

    Accountant will take the updated schedule and anything else will be a repair so should be fairly straight forward