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Barry2(Enthusiast)Enthusiast
10 May 2021

Hello,

I need to replace the whole double garage door in a rental property as it is beyond repair, costing $2700

Do I claim it as depreciation plant or expense?

Thanks in advance.

4,395 views
1 replies
4,395 views
1 replies

Most helpful response

Most helpful replyATO Certified Response

TaxedoMask(Devotee)Devotee
ATO Certified Response10 May 2021

Repair (expense) vs Replacement (capitalise and depreciate) - see here

In short - if you replace the whole thing, you generally capitalise and depreciate. If you are only replacing / repairing part of an asset then its repair.

For you - it sounds like you need to capitalise and depreciate.

All replies

Most helpful replyATO Certified Response

TaxedoMask(Devotee)Devotee
ATO Certified Response10 May 2021

Repair (expense) vs Replacement (capitalise and depreciate) - see here

In short - if you replace the whole thing, you generally capitalise and depreciate. If you are only replacing / repairing part of an asset then its repair.

For you - it sounds like you need to capitalise and depreciate.

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