Quick one can I depreciate these items when renovating. Cheers.
Jay.
Yep. But generally over a long period.
Essentially, what is relevant from the ATO’s perspective is whether the floor coverings are removeable without damage. If they are, they are regarded as an item of Plant – a Depreciable Asset. As such they have an Effective Life less than the building.
Tiles in the bathroom are regarded as part of the building. They are not removeable without damage and they’re really not going to wear out. They are depreciable at 2.5%.
Lino/vinyl has an Effective Life of 10 years, unless it is glued down, in which case it’s part of the building.
Carpet has an Effective Life of 10 years.
Floating timber floors as of July 1 this year have an Effective Life of 15 years, which is ironic given that many of the ones I have seen are not going to last that long.
Scott
Tax Depreciation Schedules
Australia wide service
1300 660033
[email protected]
http://www.depreciator.com.au
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