All Topics / Help Needed! / Is new Lawn (grass) tax deductible?

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  • Profile photo of DEVILZDEVILZ
    Participant
    @devilz
    Join Date: 2012
    Post Count: 33

    Hi people,

    I would like to know if I lay new Lawn at one of my IP – can I claim it back during tax return?
    Old lawn was destroyed buy previous tenants and zero care after they left – so it is just patches of weeds everywhere.( I can get evidence like photos and letters from RE agent and company who can lay new turf)

    Will it classify as repair in ATO eyes and be tax deductible? or it will be seen as an improvement (non tax deductible)

    Thank you

    Profile photo of ChrisA1ChrisA1
    Participant
    @chrisa1
    Join Date: 2011
    Post Count: 172

    That is a really interesting question!

    Could could be seen as a repair (replacing like for like), as long as the previous lawn was ‘in a state of disrepair’ or as an improvement since lawn may not be regarded as essential (although usually is).

    A further question would be, could you scrap the old lawn (from a depreciation point of view). I have never seen lawn included in a depreciation schedule.

    I would dare say the ATO only considers items inside the house, rather than the property in its entirety. But worth asking the question.

    ChrisA1

    Persistence is 'to keep on keeping on, no matter how hard the going may be'

    Profile photo of thecrestthecrest
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    @thecrest
    Join Date: 2004
    Post Count: 992

    Yes excellent question Devilz and if you don’t mind – Can we include plants or landscaping in this question please ?
    Certainly not cheap and perhaps could be depreciated as well ?
    Anyone know ?
    Cheers
    thecrest

    thecrest | Tony Neale - Statewide Motel Brokers
    http://www.statewidemotelbrokers.com.au
    Email Me | Phone Me

    selling motels in NSW

    Profile photo of Ryan_vsRyan_vs
    Participant
    @ryan_vs
    Join Date: 2012
    Post Count: 11

    Hi all. Soft landscaping (turf/trees/dirt etc) is not depreciable. Now, can it be claimed by your accountant as repairs/maintenance etc.? No idea.

    • This reply was modified 5 years, 10 months ago by Profile photo of Ryan_vs Ryan_vs.
    Profile photo of CatalystCatalyst
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    @catalyst
    Join Date: 2008
    Post Count: 1,404

    If you are replacing “like for like” it is NOT a repair it is a replace.

    A repair is when you “repair” or fix the old.

    When you replace something it is seen as an improvement.

    Profile photo of DEVILZDEVILZ
    Participant
    @devilz
    Join Date: 2012
    Post Count: 33

    This is a dilemma Catalyst. This situation could be seen from either side: Replacing “like for like” (lawn for lawn) or seen as Repair – because as I stated before lawn is damaged and basically doesn’t exist any more and affects its rental potential (got few comments from potential tenants about the state of lawn)

    Profile photo of bm17bm17
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    @bm17
    Join Date: 2010
    Post Count: 47

    Catalyst, you say when you replace something, it is seen as an improvement. I am not totally sure on this (happy to proved incorrect) because what if you replace a hot water service because the old one died? That is replacing something but I would expect the whole cost to be claimed in that year?

    Profile photo of CatalystCatalyst
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    @catalyst
    Join Date: 2008
    Post Count: 1,404

    Look up the meaning of repair. It means to fix something. re·pairs. v.tr. 1. To restore to sound condition after damage or injury; fix: repaired the broken watch.

    You are not “fixing” the existing lawn you are “replacing” it.
    Simple English really.

    That is correct bm17. It is seen as an improvement as you are replacing new for old.

    You add it to your cost base.

    Profile photo of thecrestthecrest
    Participant
    @thecrest
    Join Date: 2004
    Post Count: 992

    Now I’m confused re deductibility.
    If I replace dead lawn, it’s a replacement, is it deductible ?
    If I repair dead lawn, it’s a repair, is it deductible ?
    Some outside items must be deductible surely, like fencing, retaining walls, paths ?
    Where the outside appearance and street appeal is vital for the business like in a motel, is any money spent on landscaping for that reason likely to be deductible rather than adding to cost base ?
    We lost heaps of lawn Jan 2013 with the heatwave in Wagga, took ages of crawling around on the lawn to fix/replace it.
    Any clarification would help me and maybe others.
    Cheers
    thecrest

    thecrest | Tony Neale - Statewide Motel Brokers
    http://www.statewidemotelbrokers.com.au
    Email Me | Phone Me

    selling motels in NSW

    Profile photo of tanner892tanner892
    Participant
    @tanner892
    Join Date: 2013
    Post Count: 25

    Now I’m confused re deductibility.
    If I replace dead lawn, it’s a replacement, is it deductible ?
    If I repair dead lawn, it’s a repair, is it deductible ?
    Some outside items must be deductible surely, like fencing, retaining walls, paths ?
    Where the outside appearance and street appeal is vital for the business like in a motel, is any money spent on landscaping for that reason likely to be deductible rather than adding to cost base ?
    We lost heaps of lawn Jan 2013 with the heatwave in Wagga, took ages of crawling around on the lawn to fix/replace it.
    Any clarification would help me and maybe others.
    Cheers
    thecrest

    Yes it can be deducted, but only as Capital works at 2.5% as it forms part of the land and will be added back to the selling price upon sale.

    In my experience ‘repairing’ of lawn doesnt occur, I’ve only ever seen people laying new lawn, and so as a new item that forms part of the land it will be depreciated at 2.5% and added back on sale, I can’t see a situation where one would ‘repair’ dead lawn, but I am not an expert, if you were to tell your Accountant that it is in fact a repair then it would be fully deductible.

    And yes outside items like fencing and retaining walls are deductible…at 2.5% (capital works) and the depreciation claimed is added back to the selling price upon sale.

    However, a ‘repair’ to lets say a retaining wall that is leaning over or damaged is fully deductible.

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