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Gardening, landscaping and claimable deductions

Discussion in 'Accounting & Tax' started by Joe101, 4th May, 2016.

  1. Joe101

    Joe101 New Member

    Joined:
    4th May, 2016
    Posts:
    1
    Location:
    Queensland
    Hey guys,

    When I had my first IP built I didn't have any gardening or landscaping done. The yard is fully turfed but It's looking a bit bland so I've decided to put a bit of money ($1,000-$2,000) towards making it look a bit more attractive and giving it some street appeal.

    I'm just a bit confused as to what is claimable and what is not.

    From my understanding after reviewing the ATO website gardening is counted as a claimable expense, however landscaping is not.

    Someone is coming to give me a quote in the next few days but the general idea is a bit of paving up the sides of the driveway and partway around the frontage of the house, dirt, some plants and maybe some solar lighting scattered throughout.

    From a quick chat I've already had with the nursery, none of this will require concreting or any heavy works.

    I'm not sure if this will fit into the 'gardening' category and be claimable, or into the landscaping category and not be claimable.

    Any suggestions or opinions are appreciated.
     
  2. BMT Tax Depreciation

    BMT Tax Depreciation Chris Business Member

    Joined:
    22nd Jun, 2015
    Posts:
    102
    Location:
    Australia
    You'll only be able to depreciate "hard" landscaping. This is not limited to concreting but may include things such as retaining walls, paving and other such elements. It will largely be capital works so you'll only get back a small amount each year (especially seeing as you seem not to be installing much in this category, if anything at all), though the lighting might see you with an instant write-off or faster depreciation.
     
  3. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,400
    Location:
    Sydney
    Hard landscaping 2.5% pa
    Soft landscape, Lawn etc - Nil but it would be a CGT cost that will reduce a future capital gain.

    Gardening deductions means mowing, weeding and maintaining
    Your proposed spend is capital expenditure and then needs to consider the Div 40 / Div 43 QS rules.