Hello,
I have an investment property built in 2015. The gas hot water system had a series of repairs before completely failing and needing replacement in March; I replaced it with an electric hot water system. The gas hot water system was less than 6 years old when it was replaced. According to the ATO's Rental Properties 2020 guide, gas & electric hot water systems (acquired after 2004) have a deemed effective life of 12 years.
I have two questions.
- I assume the new electric hot water system should be deducted over 12 years, as with any new depreciating plant - is that right?
- For the old gas hot water system, do I continue to deduct it each year until its end of effective life; OR can I recalculate its effective life to match how long it actually lasted?
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1,091 views
1 replies