Hi there 1 of my investment properties the carpets are getting old and stained starting to look crapy also have floor boards in dining room need a face lift. If i re carpet the bedrooms and sand back floor boards and re coat them i can claim on tax?? Corret?? Thanks Matt.
The carpet is capital expenditure and replaces the old carpet. The former carpet can be written off if its has a residual value for depreciation provided it is not pooled. The new carpet would commence depreciation. The issue with the floorboards is that you may well be repairing wear, tear and damage and that expense may well be deductible.
@Paul@PFI I don't quite understand Are you saying that if you replace the old carpet with new carpet, then you can claim wear, tear etc that you can't claim if you left it as floorboards?
@Mac Fields - the treatment of the floor boards in the dining room may be claimed as repairs & maintenance if the treatment is bringing the floor boards back to their original condition. The carpeted rooms are bedrooms. So, they are a separate scenario to the floor boards in the dining room.
I will not normally junmp in to anoter post but must when its unqualified. Seddons view suggests the issue of being bedrooms has no bearing on a single issue. Its really does. Repairs are dealt with under tax law and have no cost limit BUT capital expenses do. Sanding the floorboards may rectify defects and damage and may be deductible. Replacements are capital expense ie carpet. Whether a expense relates to a single room (dining / bedroom) have zero effect for tax purposes also. Great reasons to have your own tax adviser to avoid such poor guidance.
Ive just recently pulled up all the carpet in my investment property because the last tenant had a dog inside that left a smell throughout the house in the carpets we couldn't get rid of. Question is would the sanding and polishing of the floorboards be immediately deductible or not? Was not a huge area so total cost was only $1770. @Paul@PFI
