Is "Termite System" installation cost tax-deductible?

Discussion in 'Accounting & Tax' started by MPL, 22nd Jun, 2022.

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  1. MPL

    MPL Member

    Joined:
    18th Jan, 2022
    Posts:
    14
    Location:
    Melbourne
    Hello All,

    I'm buying an existing property in QLD which already has "Termite System" installed but expired (as per vendor).
    Now I'm planning to install a new system in place of it as it is expired.

    Is that cost tax-deductible ? or comes under "cost base" for capital gain tax?

    Thanks
     
    MPL, 22nd Jun, 2022
    #1
  2. Paul@PAS

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

    Joined:
    18th Jun, 2015
    Posts:
    23,528
    Location:
    Sydney
    I would consider it a initial repair as it is a capital expense, and is defective at acquistion. Initial repairs are not deductible. The expense doesnt relate at all to production of income and is too soon to relate to tenancy.
     
    Paul@PAS, 23rd Jun, 2022
    #2