Cutting down trees, repairing and painting rotten boards. Deductible or depreciate?

[hawkeye]

Cost of removing trees was $3600 can that be deducted as an expense as there isn't an asset to depreciate??

Rotten weatherboards were replaced $6,000. Can this be depreciated (what rate) or is it part of the building that can't be now?


I painted the new boards. Can I claim the paint as an expense?

Decromastic roof was replaced with coloursteel roof $18,000 - how do you treat that?

I have read some old threads but I am not sure if they are up to date enough.

Thanks,

LAJ

[sidinz]

Rotten weatherboards and paint, definitely maintenance.
Roof - was the old roof in reasonable condition or did it need to be replaced?
Trees - why did you remove them?

[Nice]

These sorts of questions are why I prefer to use an accountant experienced in property. I often have robust discussions with him over what is claimable and where, I can use these discussions to ensure he has contemplated all the views expressed on here from time to time, but in the end he is only going to put through what he can legitamately do so on my behalf.

[Nick G]

Talk to your accountant, that's why they're there.

[Rosco]

Any of these kind of questions depends on your circumstances

1) If you have just purchased recently, then these will be a cost of buying the property and not a repair. In your case, if a cost of buying, there would also be no depreciation as not an asset

2) If when you purchased the property, you received a specific discount for one of the these items, then will always be a cost of buying as similar to 1)

3) If not 1 or 2 and you have owned the property as a long term rental for a number of years, then these would be repairs. ie fully deductible as a repair in the year done.

4) If this is a trading property, then will add to the value of the property and the closing stock. So not be immediately deductible as a repair, but long term would reduce the profit from the trade when sold.

I suggest you start using a Property accountant who is also a Chartered Accountant, as if you are asking these kind of questions, what else are you getting wrong or missing?

Ross