Bought a rental property 2 years ago.
Property is a 1970's unit with original kitchen.
If we renovate the kitchen - the ATO website (https://www.ato.gov.au/individuals-and-families/investments-and-assets/residential-rental-properties/rental-expenses-to-claim/rental-expenses-you-claim-over-several-years#Substantialrenovations) lists replacement of the kitchen as a substantial renovation and goes on to state "Apart from the cost of replacing depreciating assets, the cost of the renovations will be deductible as capital works regardless of whether they are substantial."
But under capital works it also states "You can only claim a deduction for the capital works on rental properties if the property:
- was built after 17 July 1985"
So is the kitchen renovation (not including the appliances) "depreciable" or not?
If they are not depreciable, how is anyone supposed to keep a property older than 1985 habitable? Replace the kitchen one "under $300" cupboard at time?
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