Fence and Retaining Wall Replacement

Discussion in 'Accounting & Tax' started by Frosty123, 20th Apr, 2018.

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  1. Frosty123

    Frosty123 Well-Known Member

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    Hi all,

    The fence between my property and my neighbors has been deteriorating for some time now.
    The fence has almost fallen down, and is only standing up due to supports that have been put in place.

    If the length of the fence is replaced with a similar style fence, would this be considered a maintenance that can be deducted entirely in the same year the expense is incurred? Or is this a capital expense?

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    Frosty123, 20th Apr, 2018
    #1
  2. Frosty123

    Frosty123 Well-Known Member

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    Frosty123, 20th Apr, 2018
    #2
  3. Terry_w

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

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    cap prob
     
    Terry_w, 20th Apr, 2018
    #3
  4. Paul@PAS

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

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    If the cost exceeds $400 its capital. If its a replacement. Div 43 applies to fences and hard landscape ie 2.5% pa.

    Repairs may include replacing palings only, or a few posts and some palings. Removing items tends to indicate replacement type work.
     
    Paul@PAS, 23rd Apr, 2018
    #4