Insurance repair tax issue

Discussion in 'Accounting & Tax' started by Freedom Seeker, 25th Jul, 2021.

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  1. Freedom Seeker

    Freedom Seeker Well-Known Member

    Joined:
    30th Jul, 2017
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    237
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    Sydney
    The tenant in one of my IPs did serious malicious damage. I chose to get a cash payout from the insurer and used the money to do all the repair/replacement work. New flooring was done on the entire house due to the damage at a number of places. Can I claim the entire cost as an expense in the financial year or should I depreciate the flooring over many years?
     
    Freedom Seeker, 25th Jul, 2021
    #1
  2. Paul@PAS

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

    Joined:
    18th Jun, 2015
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    23,536
    Location:
    Sydney
    New flooring is a depreciable expense. The old flooring might be a asset write off in a QS report ?
     
    Paul@PAS, 27th Jul, 2021
    #2
    Colin Rice likes this.