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Leah0044(Newbie)Newbie
13 Sept 2023

Hi,

We purchased a rental property recently and the tenants have moved in. The property is on tank water.

Our rental agent has asked us to have the tank water tested to ensure it is drinkable. This is because they recently had a property on tank water where the tenants got sick after drinking the water.


My question is - can we claim the cost for the testing of the water at all?

And if the results come back saying the water is not drinkable and we decide to install a water filtration system, can this be claimed as a deductible depreciating asset?


Thanks,

Leah

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TeddyATO(Community Support)Community Support
15 Sept 2023

Hello @Leah0044,


Yes you should be able to claim the deduction for the water testing as this is an obvious obligation for the safety of your tenants. As for the installing a water filtration system you would most likely be able to claim the decline in value over time. If you have anymore questions you can usually find the answer in the rental property guide we release each year.

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Most helpful reply

TeddyATO(Community Support)Community Support
15 Sept 2023

Hello @Leah0044,


Yes you should be able to claim the deduction for the water testing as this is an obvious obligation for the safety of your tenants. As for the installing a water filtration system you would most likely be able to claim the decline in value over time. If you have anymore questions you can usually find the answer in the rental property guide we release each year.

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