All Topics / Help Needed! / Capital or maintenance

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  • Profile photo of geordieblokegeordiebloke
    Participant
    @geordiebloke
    Join Date: 2013
    Post Count: 3
    June 25, 2015 - 1:58 pm

    Good morning,

    Quick question, I need to replace some windows on my rental property due to general wear and tear/ storm damage.
    The windows are pretty much like for like, but obviously more modern than the previous ones which are about 20 years old.
    Because the windows are being completely replaced rather than repaired (was told that this was not cost effective) will I have to put this down as a capital expenditure for tax purposes, or can I claim through my yearly tax return?

    Thanks

    Steve

    Profile photo of dtrain28dtrain28
    Participant
    @dtrain28
    Join Date: 2015
    Post Count: 27
    June 25, 2015 - 3:18 pm

    The ATO would most likely deem this to be capital expenditure, because you are replacing old with new, not repairing. You can still claim depreciation at 2.5% prime cost.

    ps. your accountant would be able to confirm.

    Cheers,

Viewing 2 posts - 1 through 2 (of 2 total)

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