Leasing Rural Farm Land

[#1]

Hi

Fences that have to be replaced on rural Land that is leased to a farmer for cattle grazing, can the owner of that land claim the fencing as an immediate write off?

I know that primary producers are able to claim fencing as an immediate deduction, in the case of the landowner does this have to be depreciated at a rate of 2.5%.

Thank You

[#2 · Accepted solution]

Hi @Frances

As you are not a primary producer different rules will apply to you as the lessor. It appears fences will fall under capital works deductions and the link will help you work this out.

Thanks,

Ari