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Replacement Hot Water System - immediate claim or depreciating asset

Discussion in 'Accounting & Tax' started by Breeamy, 12th Aug, 2015.

  1. Breeamy

    Breeamy Member

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    10th Aug, 2015
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    Location:
    Regional NSW
    I've just had to replace the hot water system in my rental, but I understood that the cost of the system would not be an immediate claim, the cost of the system should be depreciated instead. Is that correct?

    The issue is my management agent forwarded the invoice and the labour costs and system cost are not itemised, so I think they will need to follow up a reissue.

    Thanks!
     
  2. BennEznElle

    BennEznElle Well-Known Member

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    18th Jun, 2015
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    Location:
    Adelaide
    You will need to scrap the old unit on your depreciation schedule and then depreciate the new one. Both the system costs and the installation cost will need to be depreciated.
     
  3. willair

    willair Well-Known Member Premium Member

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    Also if the old unit is copper internal,they are worth over 75 bucks from scrap metal recycling outlets
    from my experience it just gets depreciated but I'm not a Accountant, but looking back at the tax paper work that the way it works..imho..
     
  4. Scott No Mates

    Scott No Mates Well-Known Member

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    It won't be worth zip if the plumber has scuttled it.
     
  5. Breeamy

    Breeamy Member

    Joined:
    10th Aug, 2015
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    Location:
    Regional NSW
    Thanks everyone Yep confirmed with my accountant the whole lots get depreciated, no immediate claim :).