Tax deductible?

Discussion in 'Accounting & Tax' started by wjw, 16th Jul, 2018.

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  1. wjw

    wjw Well-Known Member

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    If I were to install something new (e.g. aircon or a deck) on a newly acquired investment property, is the install cost tax deductible?

    For example, in the case of an aircon, I know the cost of the aircon itself will be considered capital and is not immediately tax deductible. However, what about the cost to get it install?

    Say if the aircon unit is $1000, and installation is an additional $800. Is the $800 tax deductible?
     
    wjw, 16th Jul, 2018
    #1
  2. Mike A

    Mike A Well-Known Member

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    nope will be added to the cost of the asset
     
    Mike A, 16th Jul, 2018
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  3. wjw

    wjw Well-Known Member

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    Thanks.
     
    wjw, 16th Jul, 2018
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  4. Paul@PAS

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

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    And depreciated as either Div 40 or Div 43 IF it is eligible. The cost to install is a part of the asset cost eg $1500 AC + $800 install - The two costs are treated as part of the same $2300 depreciable plant & equipment item
     
    Paul@PAS, 16th Jul, 2018
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