Power meter expenditure

Question from dinesh updated on 9th November 2018:

I have a home and income type rental property. Both dwellings are rented separately. I have installed a separate power meter that cost me nearly $3500. Can you please advise me whether I can claim (tax deduction) as expenses or depreciation as building fit out?

Our expert Mark Withers responded:

My view is that expenditure on the power check meter is neither claimable nor depreciable. This is on the basis that it is capital expenditure on an item that becomes integral to and part of the building. The meter serves no independent purpose other than when it is attached to, and wired into, the building. Damage to the building may also be incurred to remove it. These are the general tests applied to determine if an item of expenditure is a stand alone asset or becomes part of the building.

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

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