Tax Deductible Expense or Capital Expense

Discussion in 'Accounting & Tax' started by JJ1081, 10th Jun, 2016.

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  1. JJ1081

    JJ1081 Active Member

    Joined:
    23rd Feb, 2016
    Posts:
    38
    Location:
    Perth
    I have almost $9000 for my properties(Two properties) in this Financial year. How should I treat these expenses for this year? Scenario is as follows:
    Property 1:

    Property 1 was available for rent from July 2015 and was rented in Aug 2015. I didn’t have Form 21 from council.
    For getting Form 21 I spent following amount.
    $198 – Glass Audit for Glazing Certificate
    $660 – Window’s inspection to engineering firm
    $540 – To certifier to get Form 21

    Question is – how should I consider these amounts? Capital expense or Maintenance Expense (as tax deductible)??

    Property 2:

    This Duplex is under construction since July 2015. Spend following amount for this Duplex.
    Scenario - Builder 1 At Fixing Stage (Approaching Practical Completion)

    $440 – Building Inspector to make sure everything is going as per plan

    Scenario - Builder 1 went into administration

    $314.30 – Paid to fix the Doors to secure the duplex.

    $4351.15 – To lawyer to terminate the contract legally and oversee any legal issues

    $1100 – Paid to Builder 2 to get quote for remaining work and other consulting work

    $200 – Paid to Builder 2 for getting certificates where work was completed by Builder 1

    $165 – Paid to get certificate from Builder 1’s subcontractor

    $2500 – Paid due to PC Items were stolen from the property.

    Question is same - any of these expenses are tax deductible or considered as Capital expense??
     
  2. Terry_w

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

    Joined:
    18th Jun, 2015
    Posts:
    41,911
    Location:
    Australia wide
    Sounds like you need a tax agent!
     
    wylie and Phantom like this.
  3. JJ1081

    JJ1081 Active Member

    Joined:
    23rd Feb, 2016
    Posts:
    38
    Location:
    Perth
    Thanks Terry, any recommendation??
     
  4. Terry_w

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

    Joined:
    18th Jun, 2015
    Posts:
    41,911
    Location:
    Australia wide
    Check out the tax forum as there are a few who post.