All Topics / Legal & Accounting / Tax on repairs after flooding

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  • Profile photo of balniksbalniks
    Participant
    @balniks
    Join Date: 2006
    Post Count: 31

    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,
    Michael

    Profile photo of DAMPropertyDAMProperty
    Participant
    @damproperty
    Join Date: 2011
    Post Count: 44

    The 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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