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Underpinning

Discussion in 'Repairs & Maintenance' started by menty, 12th Apr, 2016.

  1. menty

    menty Well-Known Member

    Joined:
    30th Jun, 2015
    Posts:
    65
    Location:
    Sydney
    I need to do underpinning for one of my rental properties (no huge rush).
    It's going to cost about 10-11K. (one side only).
    Can anyone chime into whether this cost can be classed as a repair or capital works?
     
  2. Depreciator

    Depreciator Moderator Staff Member

    Joined:
    15th Jun, 2015
    Posts:
    730
    Location:
    Sydney
    We had a client once who had to do this. They were knocked back by the ATO when they tried to claim it as a repair. The damage had occurred while they were renting out the place, so that was fine. But the ATO logic was that what they were doing was introducing a new structure to the property i.e. a buried concrete pad. The ATO said that the new structure needed to be claimed at 2.5%pa. They did say he could claim some associated plaster and paint work inside as 'repairs'.