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Depreciation for wooden floors

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  • Depreciation for wooden floors

    I recently had the old carpet & lino removed from a rental property and the wooden floors polished & polyurethened. I guess this is capital expenditure but I can't seem to find out what the depreciation rate is for wooden floors/polyurethene. Can anyone assist?

  • #2
    Part of building structure, therefore 4% DV.

    Possible claim upfront as repairs and maintenance??

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    • #3
      Thanks. Unfortunately, because I just bought the property, I don't think I can claim it as repairs & maintenance. It's somewhat contradictory but the IRD's rental income booklet seems to say that if you buy a property in a rundown state & spend money bringing it up to scratch before it's tenanted, it is capital expenditure.

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      • #4
        Jem,

        Your interpretation is correct. The improvements have to be treated as capital expenditure.

        If you had rented the property out and then undertaken the renovation you would would have been able to writte off the carpet/ lino at the stated book value and then claim depreciation going forward.


        regards

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        • #5
          Warren,

          It's great to have you involved in the Forum.

          Thanks a lot.

          Cheers,

          Donna :P
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