Dear ATO Community,
How are you? Rental property's Hot water System Gas broken down recently and leaked so we had to replace a brand new one (also gas, similar model).
Search through ATO Community re this is it treated as Immediate deduction (repair/maintenance) or need to be depreciated over 12 years?
There are 2 different answers from experts we can find in ATO community :
https://community.ato.gov.au/s/question/a0J9s000000NJiYEAW/p00190392?referrer=a0N9s000000DacEEAS
New HWS = depreciation item
Reason for change generally not relevant.
Then another one :
https://community.ato.gov.au/s/question/a0JRF000001jKmn/p00307338
In this case you can consider it a repair and make a claim in full.
Exactly like you said, you can't leave the tenants with cold water. I reckon they'll be especially wanting hot water in this cold winter. Well, it's rather chilly where I am.
If you'd made upgrades like installing solar to the hot water system, that'd be different.
You needed to keep the property in a tenantable condition, so this is a claim you can make now.
So a bit confused....which one is correct?
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