All Topics / Legal & Accounting / Tax on repairs after flooding
Hi all,
Just after a quick heads up on this before i lodge my tax.
I recently had repairs done to an investment property after about 1ft of water went through it during the floods.
Here is a scope of the works carried out:
• Clean out wall cavities to all Units and Common Areas before
sheeting*.
• Disinfect floor tiles and wall tiles to first 2 rows of tiles to all
bathrooms*.
• Disinfect concrete* as required.
• Disinfect wall framing* as required”.
• Replace any loose skirting tiles, grout and make good to units as
required*. (include as PC item per tile including S&F tile, grout and
top seal to wall)
• Supply and Fit gyprock wall sheeting, set, prepare and paint to
make good to all Units and Common Areas as required.
• Remove hooks and nails from top wall sheeting, patch small holes
to sheeting ready for painting.
• Replace kitchens, re-using bench top, sink, tap ware, fittings,
handles etc.
• Replace wall sheeting behind kitchens as required*.
• Supply and Fit fire rated wall sheeting as per existing locations,
set, prepare and paint to make good to all Units and Common
areas as required.
• Supply and Fit insulation to fire walls to all areas as required.
• Supply and Fit Carpet to Units and Common Areas as required
(Commercial grade to common areas; domestic grade to units).
• Replace Vinyl to kitchen areas to all Units.
• Supply and Fit Skirting and architrave to match existing, prepare
and paint to make good to all Units and Common Areas as
required.
• Ease and Adjust all doors, prepare and paint to make good to all
Units and Common Areas as required. Include remove/ refit
pelmet as required. Does not include laundry tub doors.
• Refit sink, electrical, plumbing fixtures and wardrobe doors to all
Units as required.
• Commercial Final Clean to all units and common areas as
required including floor grates.
• Treat termite activity to units as required.
• Remove all trade related waste from site.
• Provide Certifier Certification for firewalls.
• Provide electrical and plumbing certificates if required.Carpets were also replaced i believe.
All up this cost me about 14k of my money.
Can i claim this all together as 1 lump sum under "repairs"? Or will this have to be broken down? What items would be depreciable? I've owned the unit since 2007, and have depreciated items before using a schedule. I am unsure of the cost of any individual items, just the gross amount. Could i just depreciate the carpet/vinyl using the old Depreciation schedule, but put in this years date?Any help or advice is appreciated.
Thanks,
MichaelThe ATO has put out some information regarding this. Have a look at this article: Has Your Rental Property been damaged or destroyed by a natural disaster?
http://www.ato.gov.au/content/00275211.htm
This should let some light on the subject for you.
DAMProperty | DAM Accounting Services
https://www.damaccountingservices.com.au
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