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Can I claim major storm water works as a deduction for my rental?

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  • Can I claim major storm water works as a deduction for my rental?

    We carried out major storm-water pipe extension. Since the neighbors were willing to share the cost to extend the stormwater line, I spend roughly 10k to the kitty to help pay for the line extension. Prior to this line all roof water was just left in the yard leading localized ponding every-time it rained heavily.

    Just collating my expenses and I am wondering if I would be able to claim this 10k as an expense?

  • #2
    Probably not, it seems like a capital investment into improving the property unfortunately.
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    • #3
      Highly likely that this is a capital improvement to your property, and so must be capitalised to the value of the property.

      If there were old lines there already that had been broken for many years, you might be able to justify a 'repair' claim, but you said extension so it doesn't sound like that is the case

      The IRD does list a depreciation rate for storm water piping, of 8% DV or 6% SL, but I doubt residential investors can claim it. Never come across it before, would require some research.
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      • #4
        Looks like capital works to me
        If it was a repair it would deductible. ..which it is not!