Heat Pump = Repairs & Maintenance?

[BradFromNZ]

Hey all,

We are looking at putting in a heat pump and was wondering if there is a way we can claim it as repairs and maintenance? If not, how are we best suited to claim as much as possible back at the end of the tax year?

Open to creative accounting however our accountant is a little straightlaced. Installer is likely to be HRV and there is no current heat source in the house.

Thanks in advance

[AlFa]

I'm not an accountant but by any means it's a capital expense.

[Beano]

Perhaps lease one
The lease payments are usually 100pc deductable

[BradFromNZ]

I'm not an accountant but by any means it's a capital expense.

Yea thats what I think as well but am hoping someone can tell me a way around that or of another way to claim as much as possible back

Perhaps lease one
The lease payments are usually 100pc deductable

Thanks for that, only thing is that we intend on moving back in to the house at some stage and would like the heat pump to be in the house still when we move back in

[AlFa]

In some regions council provide interest free loan for heat pumps. It's being added to rates over 10y. It's a brilliant way but conditions could be hard to meet

[BradFromNZ]

In some regions council provide interest free loan for heat pumps. It's being added to rates over 10y. It's a brilliant way but conditions could be hard to meet

Thanks for that. Paying it off at once isn't a problem on this instance as I am hoping to get it done and paid for before 31/3/19 when the ring fencing comes in so I really just need to know how I can put it on the books in order to claim as much back at once

[Davo36]

Thanks for that. Paying it off at once isn't a problem on this instance as I am hoping to get it done and paid for before 31/3/19 when the ring fencing comes in so I really just need to know how I can put it on the books in order to claim as much back at once

It's a capital expense mate.

I put some in a few years ago. My accountant is straightlaced too. But she was right.

[Beano]

Do a deal with a air-con company
Lease it with a option to buy at the end of the lease

[Don't believe the Hype]

This is a fantastic idea... wish i'd thought of it!

[Aston]

You seem to know that it is a capital expense but you still want me to contribute to the cost of your heat pump... If you just include you bank account number, I think you'll find that most people on this site will just contribute directly.

[BradFromNZ]

It's a capital expense mate.

I put some in a few years ago. My accountant is straightlaced too. But she was right.

Bugger, thought there might be a work around.

Do a deal with a air-con company
Lease it with a option to buy at the end of the lease

Yea, good thinking, I just don't have the time frame to do that as we will probably move back in to the house sooner rather than later

[donna]

Wasn't there talk of heat pumps becoming compulsory in rentals? We've just committed to installing one in a rental - $1995 for a 7.5 KW (I think it's a good deal).

cheers,

Donna

[BradFromNZ]

Wasn't there talk of heat pumps becoming compulsory in rentals? We've just committed to installing one in a rental - $1995 for a 7.5 KW (I think it's a good deal).

cheers,

Donna

Yea I remember hearing something about having to provide a heat source or something? Even if that is the case, that doesn't mean it can be claimed back though does it?

$1995 sounds pretty good. Who did you go with for that?

[Wayne]

In some regions council provide interest free loan for heat pumps. It's being added to rates over 10y. It's a brilliant way but conditions could be hard to meet

Still on the capital account - the payments would not be R&M since you are paying back a loan (not interest).

[Wayne]

Do a deal with a air-con company
Lease it with a option to buy at the end of the lease

Sounds dodgy.
The aircon company would then have to declare the profit on the lease - unless they are in that business I can't see that happening.
So Govt would get their tax one way or another.