Question from eli updated on 18th October 2017:
I am about to rent out my newly renovated family home on a long term basis. I know you can't depreciate the building but can I depreciate the following items - fences, electric gate, painting and decorating, HWC, retaining walls / planters, decks, kitchen cabinetry? Also, how do I value these for depreciation?
Our expert Mark Withers responded:
Fences: Yes, it’s a separate asset not a building.
Electric gate: Yes, assuming its part of the fence.
Painting & decorating: No, these form part of the building.
HWC: Yes, it’s a separate chattel as its not attached to the building by means other than a plumbing fitting and can be removed without damage to the building.
Retaining walls / planters: Yes, retaining walls are not part of the building, they are separately depreciable and there are different rates depending on whether they are wooden or concrete.
Decks: Generally attached to and part of the building so non-depreciable.
Kitchen cabinetry: Attached to the building so non-depreciable.
Mark Withers and his team at Withers Tsang & Co specialise in advising on property related transactions, valuation and restructure services and tax planning.