Tax deductibility of asbestos removal

Discussion in 'Accounting & Tax' started by jprops, 5th Jun, 2017.

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  1. jprops

    jprops Well-Known Member

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    Hi,

    I've recently renovated the kitchen in my IP while between tenants, I previously asked a related question here

    The renovation was delayed as kitchen contained asbestos and we needed to first remove this.

    I have read that the cost of removing the asbestos can be deducted in the year it was incurred under environmental protection activities? Would this apply in this situation?

    Also, as a result of the outgoing inspection by my PM, it was suggested that we repaint the interior due to wear and tear, would this also be claimable under maintenance?

    Thanks,
     
    jprops, 5th Jun, 2017
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  2. Paul@PAS

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

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    It would be a repair cost in any event. Environmental protection activities is more concerned with a replacement eg roofing, insulation etc....

    Its important the the cost be carefully invoiced etc so that the Div 43 expenses for the kitchen reno (not deductible but depreciable) and the repair element can be determined
     
    Paul@PAS, 5th Jun, 2017
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  3. jprops

    jprops Well-Known Member

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    Thanks @Paul@PFI - the asbestos removal will be invoiced completely separately.
     
    jprops, 5th Jun, 2017
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  4. Rob G

    Rob G Well-Known Member

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    Rob G, 6th Jun, 2017
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    jprops likes this.
  5. Terry_w

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

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    Terry_w, 6th Jun, 2017
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