Claiming Pest Control

Discussion in 'Accounting & Tax' started by smallbuyer, 31st Aug, 2017.

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  1. smallbuyer

    smallbuyer Well-Known Member

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    Hello,

    Does the claiming of pest control ever need to be spread across multiple year? eg if you pay $2000 for a 5 year barrier treatment can you claim all of that when you pay it or or 20% per year?

    Cheers
     
    smallbuyer, 31st Aug, 2017
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  2. Paul@PAS

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

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    If it rectifies damage to an existing IP its deductible. Some pest services are capital and non-deductible eg a new terminate barrier when there are no termites evident. Hard to see how abarrier can be a treatment rather than a build costs but maybe if you barriered a existing IP after noting damage..ie drill slab and inject etc A barrier would often be a part of the construct and part of the capital costs.

    If its a new build then its capital as its incurred in construction
     
    Paul@PAS, 31st Aug, 2017
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  3. smallbuyer

    smallbuyer Well-Known Member

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    Thanks for your reply. How about refilling a termite irrigation system or putting up chemical treatment barrier? Usually something done every 5 years and costs a couple of grand
     
    smallbuyer, 1st Sep, 2017
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  4. Paul@PAS

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

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    Seems like capital expenditure to me. Perhaps BMT / Depreciator may suggest a short effective life ?
     
    Paul@PAS, 1st Sep, 2017
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  5. Stoffo

    Stoffo Well-Known Member

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    Refilling a barrier, i would have thought would be ongoing "maintenance" (like mowing the lawn).
    You could have it termed as "monitoring" or checking of the barrier/bait station's?

    How are the rodent bait stations you see at some places clasified for tax purposes ? (still a pest)...
     
    Stoffo, 1st Sep, 2017
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  6. Paul@PAS

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

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    Perhaps. However the longevity may make it capital expenditure.

    Rob is a lawyer who previously posted this view which seems like mine. He suggested a Div 43 cost. I question if its Div 43 but maybe a shorter effective life...Thats why BMT / Depreciators view may help.

    Termite Barrier
     
    Paul@PAS, 1st Sep, 2017
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  7. smallbuyer

    smallbuyer Well-Known Member

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    Thanks for your replies.
    The installation of the irrigation system which lasts for many decades certainly sounds like part of the building so 40 years makes sense. Refilling the irrigation or spraying a line of poison under the dirt, which last 5 years (or 2 years depending on the chemical) surely must be immediate write off or 2/5 year. If its 2/5 years is it put under capital allowances or pest control?
     
    smallbuyer, 1st Sep, 2017
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  8. Toby

    Toby Well-Known Member

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    Toby, 1st Sep, 2017
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  9. Paul@PAS

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

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    Pest control to treat pest issues is deductible. We are addresing the building and the capital expense of a barrier treatment.
     
    Paul@PAS, 1st Sep, 2017
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