Investment property issues

[WilSurf]

Reply from our agent:

The trade has investigated thoroughly including being in contact with the original distributer. The system was a special that was only sold in Australia by Retrovision who have now gone into liquidation, and all products that were still with Retrovision were auctioned off to places such as this, the product is no longer being made from my understanding and this is existing stock which is being flogged off to the market.

As he has advised he is not prepared to source parts off EBAY nor off an un reputable trade.  He has actually thoroughly looked into this and spent considerable time in trying to source the part with no additional cost to you.

It looks like it will be a new unit. :-(
But according the ATO a repair is tax deductable so I get something back from the total cost.

[Geoffwin]

A new unit will not be a repair so it is not an immediate deduction,

The new unit including the install costs will need to be depreciated over a number of years, this will depend on how you have setup the assets for tax purposes.

[WilSurf]

The existing one has to be repaired, but can't so it is like a repair.

[Nomad]

The existing one can be totally written off in accordance with your existing depreciation schedule to provide the deduction. The new unit must be taken into account by your accountant and will be depreciated in the method that you have adopted. Really its not a win and its not a lose situation from a tax perspective.

[Mallory Black]

a good poin tNomad, many landlords don't have a depretiation schedule, you got onw of those Mr Wilsurf?
very important especially with a new property

[WilSurf]

Yep, we have that in place.
Does this mean that it has to be re-evaluated?

[Nomad]

Nah you should just be able to add it to the schedule.

[Geoffwin]

Yep, we have that in place.
Does this mean that it has to be re-evaluated?

I had a "Property Depreciation Schedule" done which outlines a 10 year depreciation schedule (found stuff I would never have considered - so good value). I understand that if I make changes to this I need to have the schedule revised to include any new assets and conclude any asset write-offs.

I assume the cost for this would be minimal but as I have never had to do it I cannot be sure. I am sure it is a minor job for the person who prepared the schedule. The cost would be an immediate deduction of course.

If you handled the initial setup of the schedule yourself it should be easy to write off the old unit and include the new unit next time you do your tax (or your accountant does)

[WilSurf]

It was done by Deppro, a company specialised in this.

[speewa158]

Young People today dont know how lucky theu really are  ,,,,,,,,,,,,,When l was a young bloke 

[WilSurf]

Young People today dont know how lucky theu really are  ,,,,,,,,,,,,,When l was a young bloke 

Thanks mate, feeling young now. 

Desicion has been made to replace the unit with a new one.
End of story, I hope.

Thanks everyone for reading and commenting.