Sorry to ask such a basic question but I have been to the ATO website and couldn’t find the answer: If I own a residential IP and I put a whole lot of new plants in the garden beds, weed, mulch etc, is this a deductible expense from the income gained from rent (which will be lease/option pmts)? I have found “gardening and mowing” is, and retaining walls and fences count as far as landscaping capital works go, so would this just be regarded as “gardening and mowing”?
Thanks,
skippygirl[
]Hi Skippygirl,
If I own a residential IP and I put a whole lot of new plants in the garden beds, weed, mulch etc, is this a deductible expense
Yes this is a deductable expense.
Cheers,
sisThanks SIS, much appreciated.
skippygirl[
]I am not sure if it quite that clear cut, it maybe a case of the cost of the plants/materials not being deductible at this point, but later to reduce capital gain, but then the cost of labour to bring garden up to scratch is deductible because it is classed as maintnance.
Repairs and general maintance are different from upgrades (capital improvements).
I think you need clear advice from a real accountant.
Lets us know what the result is.
BC
bc is on the money.
You will need to be able to prove whether the plants are more or less repairs / maintenance (deductible) OR whether they are improving the value of the property (capital works) (offsets capital gains).
Get some advice from an accountant. If you are using SIS’s, best get advice from two.
]
]
You must be logged in to reply to this topic. If you don't have an account, you can register here.
