Hi everyone,
my investment property has a small patch of grass in the backyard which is a hassle to my tenants, i.e insects, mowing etc. I want to replace the grass with say tiles or concrete. So is this tax deductible?
Thanks
PropertySeekerA few questions: is it maintenance or replacement of an asset with a different asset?
Putting down a slab will require excavation, drainage, possibly concrete pump etc – so it won't be a cheap exercise. Concrete will also increase the heat-load on the house. If the grass is in good condition, then consider a rent increase & offset by arranging for regular mowing.
Hiya
I dont believe you could claim the full amount as an immediate deduction but u should be entitled to a capital works deduction.
Here is the link to the relevant page of the ATOs 'Rental Properties' guide.
http://www.ato.gov.au/individuals/content.asp?doc=/content/00237831.htm&page=22&H22
The long answer is Yes you can! It would be deemed as capital improvements to the property in the form of a fixture and you would propably even be able to depreciate it as well. A quick call to a Quantity Surveyor such as BMT Tax Depreciation in any one of their national offices will give you the answer real fast!
CHEERS!
TC
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