For DIY renovations, I understand that the things you install - tiles, walls, floors, fittings etc are generally capital expenses and are depreciated over time - but what about things like tools and consumables? For example, putting up fibre cement sheeting requires the purchase of fibre cement shears and a small step ladder. Are they deductible, and if so, are they depreciated as a capital expense or is it an immediate deduction? What about consumables like drill bits, etc?
Consumables no issue. Tools (if you're not a tradie) not directly linked to earning the income, so not a deduction AFAIK.
You would have to apportion the use. If you buy a ladder and use it once for an IP but thereafter for the main residence, peeping into neighbours houses, fruit picking etc, then it would be not worth the bother of claiming i think. Can't say I have ever claimed any tools etc.
Tools and incidential materials etc would comprise a element of the costbase of any capital expenditure under Div 40 or Div 43. Or a element of the cost of a deductible repair. Apportioning across each use would be required. Travel is no longer allowed as a element of any of these three elements. except in very limited instances. And needless to say you cant add labour costs for your own efforts as you cant pay yourself or a spouse etc
An all too common question people pose to us. I generally respond with the question, "Do you have many other deductions you can claim on money you haven't spent?"
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