Hey Accounting gurus,
I have a question about painting…
If existing paint is old, tired, chipped and cracks/holes in the wall, and the services of a pro painter are engaged to repaint all walls/window + door frames/ceilings etc, with an invoice of approx $3000 – is this considered a repair? or a renovation / capital works?
and also, just out of curiosity:
scenario A: painted new purchase of old house, needed paint in order to attract tenants. advertised as available to rent PRIOR to date painter hired, but tenants moved in and commenced paying after invoice date – can this be deducted?
scenario B: refreshed walls of property owned for 6 years, 4.5 of which as IP. 100% of the tax year was rented.
After reading the ATO website, I seem to feel that in scenario A, because the work was done prior to the property being rented (despite it being advertised as available prior) then it would definitely not be classed as a repair, but could potentially be claimed as capital works deduction
scenario B – as the property was currently rented, I would think/hope this would be classed as a repair. However because the whole place was painted in a new colour, and not just “touched-up” does that then mean it becomes a capital work to be depreciated over time?
Oh and one final little question on this topic, if I purchase paint and painted either property myself now that they’re both rented, I assume I could claim the paint costs as repairs/maintenance now?
Many thanks,
EmmaA) Capital … initial repair even if deferred
Maybe capital if the extent of repainting was beyond required, i.e. if only patches required repainting. Also, if you used a more durable weather resistant paint etc.Its a matter of reasonable judgement, but if choosing a different colour forced you to repaint the whole house then this may indicate another purpose other than a mere repair.
TR 97/23
Cheers,
Rob
Rob G. wrote:A) Capital … initial repair even if deferred
Maybe capital if the extent of repainting was beyond required, i.e. if only patches required repainting. Also, if you used a more durable weather resistant paint etc.Its a matter of reasonable judgement, but if choosing a different colour forced you to repaint the whole house then this may indicate another purpose other than a mere repair.
TR 97/23
Cheers,
Rob
Thanks Rob
so does that mean:
A) claim 2.5% over 40 years? or not deductible at all, and gets add to capital base?
if capital then thencan claim 2.5% of the invoice over 40 years? as per all renos? is that right?Thanks for the help
Maybe capital if the extent of repainting was beyond required, i.e. if only patches required repainting. Also, if you used a more durable weather resistant paint etc.You must be logged in to reply to this topic. If you don't have an account, you can register here.
