Can we claim the cost of replacing boundary fences from our tax?

Paul Donaldson asks:
(updated on Thursday, October 18th 2007)

With a rental property can we claim the cost of replacing boundary fences from our tax?

Our Experts Answer:

It all depends on the cost and what you are doing. If you are just replacing a few poles or rails, yet the bulk of the fence is staying intact, then that will definitely be a repair regardless of the cost. If you are replacing the whole fence in its entirety, the ripping out of the old fence will be a repair, but the new fence will be a capital improvement and so the money spent will become a fixed asset which will then be depreciated at the appropriate rate.

Kenina Court is a director of Acorn Solutions Limited, an accounting firm dedicated to working with clients to help them create wealth. She is an avid property investor, entrepreneur and seminar presenter on asset protection and wealth strategies.



 




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