DIY Renovation deductions

Discussion in 'Accounting & Tax' started by shorty, 7th Jan, 2020.

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  1. shorty

    shorty Well-Known Member

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    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?
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Consumables no issue. Tools (if you're not a tradie) not directly linked to earning the income, so not a deduction AFAIK.
     
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  3. shorty

    shorty Well-Known Member

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    That seems fair enough. I spose tool rental would probably be ok though?
     
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    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.
     
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  5. Paul@PAS

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

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    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
     
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  6. shorty

    shorty Well-Known Member

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    Yep I'd love to pay myself but figured that wouldn't fly.

    Thanks all
     
  7. BMT Tax Depreciation

    BMT Tax Depreciation Chris Business Member

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    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?"
     
  8. Paul@PAS

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

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    And even if you could then there would be a deduction to offset the income....o_O
    Doh
     
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