Hi there, Up until now, I've never made an insurance claim on anything (investment property or otherwise). However, we recently had an oven fail at our investment property (front glass shattered), and to my surprise, our insurance policy covers it. We have a $200 excess, and I just wanted to know if this can be claimed for this financial year? I imagine we would write off the old oven this year, and have the new oven added into our depreciate schedule too...
Anyone know how insurance excess is treated for tax purposes? I've had numerous break ins at a vacant property and have had to pay an excess directly to the trades person. Also on another note will any replaced equipment (boiler and a/c units ) be depreciated despite being paid for by the insurance company. Thanks
Just a thought... perhaps it is cheaper to pay for a new glass insert for the oven door than claim the insurance and pay the excess? We recently had this happen and (without looking for the receipt) I think it was less than $200 for the new glass.
No. The concept is that of replacement. The tax view is that the insurer has made good the item without further cost. So it continues to be depreciated. There is no cost incurred for the new item. However, a QS could reassess the property and it would likely be refreshed.
