Shed replacement and tax deduction

Hi
I need to replace a garden shed at one of my IPs as the current shed has rusted right through at the base. The replacement shed would obviously be an improvement as it will be new, but not a higher standard of shed as the one being replaced. Would this be a maintenance/repair tax deduction for the current financial year or would I need to depreciate the expense?
Thanks

 

Are you talking $200 or $20000? Your accountant can advise where the line is drawn between at immediate tax deduction or depreciable improvement .

 

About $1000. Anyway I've looked through the ATO website and it can be claimed in the financial year.

 

It sounds more like you'd have to depreciate it but perhaps I'm missing something. What page were you looking at?

 

This page. The shed has rusted out at the base. The new one is not an improvement over the old shed, in fact it is a smaller shed.

Expenses deductible immediately - management, maintenance, interest

 

Its not a repair. Its a replacement asset. As it costs $300+ it must be depreciated.
This question should be under the tax thread.

 

I dont think so. Share the link. I think you are misunderstanding.

 

Hi Paul, At what rate is the shed (simple $1k shed) depreciated at? If it is non linear then a rough description will give me an understanding E.g. 60% over 3 years and remaining over next 7 years.

 

I hope you don't mind me jumping in. A freestanding garden shed (at a residential property) has a 15-year lifespan, meaning that you can claim its cost (including delivery and labour) @ 13.33% compounding using the diminishing value method. However, if its total cost was less than $1000 or when its written-down value drops under that, you'll be able to depreciate it at a faster rate as part of the low-value pool. You can read more about that here:

How Does The Low-Value Pool Apply To Depreciation | BMT Insider

 

Awesome. Thanks for the link.