Pls help! i am sooo [confused2] confused!
I have a bookeeper telling me that certain items i have purchased are considered”job consumables”. I reckon they are either (or both??) “hardware” &/or “capital” costs!
As this will greatly affect my tax return,can someone PLEASE set me straight!
How do i claim items you buy at the hardware store? & does it matter whether these items are to be used on a brand new house (i figure they would then be capital??), or used in a repair,(then they would be fully deductable?Eg silicone) or on an old house waiting to be rented out? (therefore NOT deductable as house wasnt rented out yet!)
AAAAHHHH!!! I HATE THE TAX OFFICE!![angry2]
Items i am refering to are things like:
Silicone,grout,glue,etc. Things that will be permanently stuck to the house.
But,then also-what if they are NOT perm. stuck??like:turps,switch covers (as they are removable),plastic bench covers,etc…
It would be a VERY painful,long & EXPENSIVE process for my accnt to seperate each & every item-so any “general rule of thumb”??[confused2]I claim them in the category of ‘cleaning and repairs’.
100% write off.
Rgds.
Lucifer_aui dont think the ato would agree that those items would be for cleaning or repairs on a new house! so,i’m still none the wiser.But than anyway.
Hi
As I understand it, I may be wrong, there are a few variables which I’ll try & explain.
Items purchased for use on a new house (paint, windex, solastic etc etc) are capital expenditure.
Items purchased for an existing IP which is, say, between tennants are generally 100% deductable if they are a REPAIR. This is direct replacement,like-for-like (you can’t replace Mitre 10 cheapest taps with gold plated ones & expect 100% deduction).
When you have got the specific definitions from the ATO or accountant, get a program such as Quicken or MYOB and set it up to allow for all this. Then keep all your own info up to date, it’ll give you a better idea of where your tax is at, so that come the end of the financial year if you look like paying too much tax you can make some expenditure to offset it.
Make any sense? I hope so.Regards
Patrick
The dumbest question is the one you don’t ask.
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