Is Tree Lopping in IP tax deductible?

If a tree has to be lopped (either removed completely or pruned), can the costs be claimed as a deduction ?

Cheers,

 

Is it related to an IP?

Is the scope outside of the tenancy agreement?

Do the tenants benefit from the use of the tree or does it make the property more appealing to renters?

Do you value it as an asset (like councils value street trees as they improve the appearance of the suburb)?

 

Does it have a swing or tree house? Amenity value.

 

@Scott No Mates The trees are in an IP.
I dont think the tenancy agreement covers problems with trees. There is nothing specifically written as to who is responsible for tree maintenance.
The tenants don't benefit from it. The trees are just a nuisance and not eyesores.
I don't value the trees as anything.
One of them is near a pool so the fruit/leaves/fronds keep dropping and are just a hassle and a risk to pool equipment. The other is a leopard tree that's just rapidly growing (and covering ground) and is again a nuisance apart from being a host to snakes and stuff.

@SatayKing No it doesn't have a tree house or a swing.

 

Anyone ?

 

I had coco palm trees and lilly pilly removed from an IP as tenants have complained about it - nuisance, mess, hygiene etc. Potentially, a problem to pipes underground or already is. Anyway, removed it and will speak to accountant about it.

 

Thank you

 

The removal of tree is not considered to be a repair as there is no replacement or correction of defects in or damage to the trees. The tree was removed was to eliminate any potential risk and is no longer in existence.

Therefore, the costs associated with the removal of the tree is considered to be capital in nature and are not deductible under sections 8-1 or 25-10 of the ITAA 1997.

Similarly you are not entitled to a deduction for the cost of removing the trees under the capital work provisions as the cost is not considered to be building or structural improvements.

Capital costs added to cost base.

In contrast general garden maintenance is an allowable deduction under section 8-1 of the ITAA 1997 where, for example, you pay a tradesman to mow lawns, maintain garden beds or prune trees. However, landscaping is considered to be an improvement and capital in nature and therefore not an allowable deduction.

If the removal of the tree does no more than return the property to the state it was in before the problem arose then it is deductible.

 

I recently obtained permission to "plant & maintain" the gardens in front of my CIP.
So all costs will be for maintenance and claimable, even though there's about $1,500 in plants to bring it back up to scratch (as when purchased).
Great post @MikeLivingTheDream

 

Wow, talk about complicated. It was a tree, and it was cut down - it should be so simple......

 

That's why I asked whether the tree was an asset.

 

@KayTea tell me about it. Tax law is insanely ridiculous at times and getting worse.

 

Thanks for replying

What is the definition of problem here ?

In my case, one of the trees by the pool was causing problems to maintaining the pool and pool equipment (filters etc) and the other is rapidly growing and is becoming a house to snakes. To me, that appears to be a problem and the solution is to lop/prune the trees. And hence the cost should be deductible. Is my understanding not correct ?

 

I have always claimed such costs.

 

That doesn't really mean much. I have seen people claim all sorts of things but that doesn't mean they are deductible.

 

The most recent one was rolled up in a suite of maintenance and repair work at the conclusion of a tenancy. It was advanced pruning.

 

Tip : Always have the invoice for tree removal refer to inspect infestation. It then better meets a repair definition.

 

What if there is no infestation?