Depreciation on capital expenses

Trusted User ford
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ford
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Depreciation on capital expenses

Hi

This is more of an accounting question

A customer is purchasing a rental property and making capital improvements to it like electrical repairs and having a soil test done, putting down a driveway, fixing up the land etc. Can these things be depreciated?

 

Thanks

 

 

3 REPLIES
Ultimate Partner Seattle
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Re: Depreciation on capital expenses

@ford

 

You may need to obtain a Quantity Surveyor's Report.

 

Your Tax Accountant may be able to determine the useful life for Depreciation purposes from the ATO.

 

There has been recent changes to the Depreciation for Plant where a second hand property is bought.

 

Have a talk to your Tax Accountant.

 

Duncan

Duncan Smith
Business Advice + Tax
Helping business owners build a better business since 1998
E expressgst@optusnet.com.au T 02 9904 3672 7 days
Super Partner Kym__Yeoward
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Re: Depreciation on capital expenses

Hi @ford - the items you mention are likely to be capital improvements (depreciable), rather than repairs (wholly deductible in the year incurred). Please talk to your tax accountant.

 

Kym Yeoward CPA ACIS (Darwin)

Trusted User ford
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ford
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Re: Depreciation on capital expenses

Thanks

 

Ford

 

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