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is Garage door depreciation or expense

Initiate

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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.

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Devotee

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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.

1 REPLY 1

Most helpful response

ATO Certified Response

Devotee

Replies 0

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.