QS Report deductions...repairs

Discussion in 'Repairs & Maintenance' started by Paul@PAS, 22nd Oct, 2017.

Join Australia's most dynamic and respected property investment community
Tags:
  1. Paul@PAS

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

    Joined:
    18th Jun, 2015
    Posts:
    23,473
    Location:
    Sydney
    The new depreciation schedule regime exposes a reason why a schedule WILL still be needed.

    I buy a property today with used assets. But my QS report says the oven has a value of $350. It fails and i buy a new one...Now its depreciable.

    The old oven..... a cgt loss. Now.

    But i question if a repair could make the former old oven restore its effective life. A question for the ato....can old assets be repaired making them as new again. If not is capex on the new costs deductible even if its over the cost limit?
     
    Paul@PAS, 22nd Oct, 2017
    #1
  2. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    27,213
    Location:
    Sydney or NSW or Australia
    @Paul@PFI - If you can no longer claim depreciation on assets which came with a property purchased after the budget, why would you seek to repair rather than replace the asset?
     
    Scott No Mates, 22nd Oct, 2017
    #2
  3. Paul@PAS

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

    Joined:
    18th Jun, 2015
    Posts:
    23,473
    Location:
    Sydney
    It may be a required cost. Tenant required. A repair would be deductible
     
    Paul@PAS, 22nd Oct, 2017
    #3
  4. Ben_j

    Ben_j Well-Known Member

    Joined:
    12th Sep, 2015
    Posts:
    63
    Location:
    Sydney
    @Paul@PFI to clarify are you suggesting that with a property that’s by purchased (not new) people should still be getting a depreciation schedule?
     
    Ben_j, 16th Mar, 2018
    #4
Buy Property Interstate WITHOUT Buyers Agents!

Buy Property Interstate WITHOUT Dropping $15k On Buyers Agents Each Time! Helping People Achieve PASSIVE INCOME Using Our Unique Data-Driven System, So You Can Confidently Buy Top 5% Growth & Cashflow Property, Anywhere In Australia