Simple Tax Advice Urgently needed

Discussion in 'Accounting & Tax' started by henry_ip, 6th Sep, 2020.

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  1. henry_ip

    henry_ip Well-Known Member

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    Just bought my first new IP, and the tenants revealed the washing machine has had a leaking problem, so I planned to buy and replace it with a new one.

    Yet , have some trouble in understanding the document needed to claim "Repairs and maintenance" tax deduction:
    Rental expenses you can claim now

    So far I can get the receipt from the vendor of the NEW one,
    But I dont have the receipt to prove the past purchase of the BROKEN one, nor the previous owner has kept it.

    Would this be a problem?

    If I cant prove I am not "replacing" the BROKEN one (as I dont have the receipt for that), would I be regarded by ATO that I am buying a new one for capital improvment instead of "Repairs and Maintenance"?

    Much appreciated for any advice or thought. Totally new to this and confused.

    Thank you very much.
     
    henry_ip, 6th Sep, 2020
    #1
  2. Mark F

    Mark F Well-Known Member

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    It is not repairs and maintenance. It is the writing off of the old washer (in the depreciation schedule) and the addition of the new washer (+installation etc) to the depreciation schedule.

    It is R&M if a service person comes out and fixes the old one.
     
    Mark F, 6th Sep, 2020
    #2
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  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    why is this urgent?
     
    Terry_w, 6th Sep, 2020
    #3
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  4. Mark F

    Mark F Well-Known Member

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    He wants his big, fat refund payment in his account sooner rather than later? :D
     
    Mark F, 6th Sep, 2020
    #4
  5. Scott No Mates

    Scott No Mates Well-Known Member

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    Essential repair and their clothes are dirty.

    :rolleyes:
     
    Scott No Mates, 6th Sep, 2020
    #5
  6. Marg4000

    Marg4000 Well-Known Member

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    A new washing machine is not a repair.

    You cannot claim the cost as a deduction, but you can claim depreciation.
     
    Marg4000, 6th Sep, 2020
    #6
  7. marty998

    marty998 Well-Known Member

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    Why are you responsible for the washing machine? Isn't this an appliance owned by the tenant?
     
    marty998, 6th Sep, 2020
    #7
  8. Archaon

    Archaon Well-Known Member

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    Was the washing machine included in the schedule for the lease?
     
    Archaon, 6th Sep, 2020
    #8
  9. Tony3008

    Tony3008 Well-Known Member

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    Washing machine, fridge and microwave came with my place when I moved in (am now a rentvestor), and what was my PPOR, now rented out, is similarly equipped.
     
    Tony3008, 6th Sep, 2020
    #9
  10. Paul@PAS

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

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    1. In the absence of a depreciation schedule for the property there will be no write off for the old washing machine. If its in a QS report then the asset could be scrapped. The QS may need to amend the schedule ?
    2. The new washing machine (provided its actually new) will commence depreciation
     
    Paul@PAS, 7th Sep, 2020
    #10