Selling items into the LAQC property

[Peter_Parker]

Hi everyone!

I am new to the site and this is my first post! Here goes...

I owned and lived in the now rental property for 6yrs last June (04) before renting it out.

We have an Electrolux Dishwasher we purchased 2 years ago while living in our now Rental property (our old family home) and it gave us no end of trouble. When we moved we took it with us (mistake!) and replaced it with another 2nd hand unit that was on it's last legs. So at the begining of this year I wrote a letter to Electrolux because we STILL had problems with it and it was decided that they would replace it with a band new item and if we wanted a Stainless Steel finish we would have to pay and extra $300.

We paid this and they took away the old white dishwasher and replaced it with a new Westinghouse (same company) Stainless unit.

The retail value is about $1500-$1600 at Noel Leemings as it is a top of the line unit.

The new model isn't as good as the old one and the fancy "Auto Sensing" drying mode is hopless! When we open the unit after it has finished everything is still quite wet!

We have now decided, to keep in line with our other applicances in the new house that we would like a F&P DishDraw dishwasher and would like to put this unit in our rental property and biff the old 2nd hand unit.

The question I have is:

The new unit is now 2-3mths old.

Can I put this into the rental property and then claim depreciation on it using the $1500-$1600 retail price it is worth??

The property is in a LAQC name and has a 2yr old Fridge, 6mth old Dryer, 6year old Washing machine as well I will be claiming depreciation on. I had ValuIT do a valuation on the chattels etc.

Any idea here??

Thank you

Spidy :P

[drelly]

With devilish cunning, I suspect you have not used your real name for this post so the tax man would hardly know whether you'd used the dishwasher at all would he? Not that I'm suggesting anything mind...

[Peter_Parker]

Thanks drelly, I guess the point I'm trying to make here is the unit only 3 mths old, but we only really paid $300 because it was an replacement. I really would like to claim on the $1500 - $1600 that it would cost if we had to replace it depreciation wise. It's brand spankers! Originally the old unit was worth about $1400 2 years ago though I have no idea where the receipt would be. Electrolux took it away as part of the exchange.

..... what makes you think Peter Parker isn't my real name? Just call me Spidy! Somebody's gotta save the all the pretty girls!!

[murray-spi-investments]

1 You can only use the price it cost you not the value of the unit
2. You should take it in at its depreciated value . Ie the cost price less depreciation over the time you have used it, unless you can argue its value has not diminished - rather hard.