All Topics / Help Needed! / Installing a new Fence

Viewing 7 posts - 1 through 7 (of 7 total)
  • Profile photo of leo777leo777
    Participant
    @leo777
    Join Date: 2005
    Post Count: 23
    August 12, 2005 - 2:43 pm

    Hi,

    I just recently purchase a property and it is currently rented. At the moment, there is no fence at all. I am thinking to install a new fence.

    My questions are:
    1. If I install a new fence, will I get a “Capital Work Deduction” or “Depreciation every year” from my tax return ?. I am aware that this is an improvement, not a repair.

    2. Do I need to consult with the council first to get an approval, in order to install a new fence.

    Thank’s in advanced.

    Profile photo of ToolsTools
    Participant
    @tools
    Join Date: 2003
    Post Count: 363
    August 12, 2005 - 11:46 pm

    Not sure about the first question,but regarding the permit situation,it depends on the location of the fence.In Victoria,it depends on if it is a front or side fence,the height,if you are on a corner block etc.Best to check with your local council.I would try their website as first port of call,and you may find what you want there.

    Tools

    Profile photo of hmackayhmackay
    Participant
    @hmackay
    Join Date: 2004
    Post Count: 197
    August 13, 2005 - 5:01 am

    Hi Leo,

    Tools says check with council. They will tell you if its ok and the max height.

    You might be able to share the cost with the neighbouring property owner.

    The new fence would be a capitol item and you could claim depreciation.

    When you get quotes, get several as I have found that there could be a big varience on price and quatity of materials. Happy fencing !!

    hrm

    Profile photo of WTBNowWTBNow
    Member
    @wtbnow
    Join Date: 2004
    Post Count: 24
    August 14, 2005 - 9:52 am

    Hi Leo,

    It may be obvious, but I always ask for a detailed quote, what materials will be used, how they will be installed, etc. This way it is easy to compare quotes and to check that the correct job was done.

    wtbnow

    Profile photo of leo777leo777
    Participant
    @leo777
    Join Date: 2005
    Post Count: 23
    August 19, 2005 - 4:39 am

    Hi,

    I heard that when you just acquire the investment, in order to get fully tax-benefit, I need to wait for (say 4-6 months) to install a new fence.

    The reason is any fence installation that is being done during the first 6 months is assumed (by ATO) as Capital Improvement, and is not tax-claimable.

    Is this true ??

    Thanks

    Profile photo of RhysQLDRhysQLD
    Participant
    @rhysqld
    Join Date: 2004
    Post Count: 53
    August 19, 2005 - 6:01 am

    Leo777,

    I think you can depreciate your fence over 20 years, looking at ATO effective life tables. This means either 5% prime cost or 7.5% diminishing.

    Rhys

    Profile photo of depreciatordepreciator
    Member
    @depreciator
    Join Date: 2003
    Post Count: 541
    August 19, 2005 - 6:37 am

    Leo,
    You’d be okay putting the fence in now and depreciating it.
    Fences are regarded by the ATO as a building item. They depreciate over 40 years at 2.5%pa. (Unless you’re thinking about bunging in an electric fence – they have a 20 year life).
    So a $1,000 fence will get you $25 per year in depreciation. But looking on the bright side, you’ll be getting that $25 per year for a long time.
    Scott

    Tax Depreciation Schedules
    Australia wide service
    1300 660033
    [email protected]
    http://www.depreciator.com.au

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