Deductible skylight work

Question from mabel updated on 15th January 2018:

We have an 80's era rental. Our tenant alerted us that water was leaking into the bathroom around the skylight when it rained. They also noted the inside wood surrounding the skylight had bulging. Outside inspection showed old acrylic skylight was worn and cracked and the flashings needed replacing.

So we replaced the skylight with a double glazed glass one (as there was no choice to use an acrylic one as they are not installed in residential properties anymore). We replaced the flashings at the same time. Is this repairs and maintenance and thus a deductible expense?

Our expert Mark Withers responded:

Yes, the skylight is not a separate asset. It is part of the building. The work undertaken is simply repairs to the building and is fully deductible.

Mark Withers and his team at Withers Tsang & Co specialise in advising on property related transactions, valuation and restructure services and tax planning.

Search the Ask an Expert archive

Browse all questions in the Ask An Expert Archive »

Site by PHP Developer