{"id":10112,"date":"2016-12-13T10:00:01","date_gmt":"2016-12-12T23:00:01","guid":{"rendered":"http:\/\/realestatetalk.com.au\/?p=10112"},"modified":"2016-12-13T10:00:01","modified_gmt":"2016-12-12T23:00:01","slug":"the-facts-about-tax-benefits-on-replacement-items-ed-chan","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/the-facts-about-tax-benefits-on-replacement-items-ed-chan\/","title":{"rendered":"The facts about tax benefits on replacement items &#8211; Ed Chan"},"content":{"rendered":"<p>&nbsp;<br \/>\n<strong>Ed Chan<\/strong> joins us to answer a question from Robyn. She is confused about some conflicting advice on the available tax benefits on replaced items in an investment property.<br \/>\n&nbsp;<\/p>\n<h4><strong>Transcript:<\/strong><\/h4>\n<p><b>Kevin:<\/b>\u00a0 We\u2019re going to answer a question on the show now that came in from Robyn. Thanks for the question. And by the way, keep those questions coming in; just send them in through the website. Ed Chan is going to answer this question for us. Hi, Ed.<br \/>\nThank you for joining us in the show.<br \/>\n<b>Ed:<\/b>\u00a0 Hi, Kevin. Thanks for having me.<br \/>\n<b>Kevin:<\/b>\u00a0 Ed Chan, of course, from Chan &amp; Naylor. The e-mail question from Robyn says, \u201cThank you for a wonderful show. I\u2019ve been listening for a number of years and have gained an enormous amount of knowledge.\u201d Thank you, Robyn. We really appreciate your feedback.<br \/>\nRobyn says that she has replaced a number of items in her rental property this year, 2015\u20132016, held in her own personal name. She understood from our program that she could claim up to $800 as an example \u2013 it was a couple who owned the property together, tenants in common \u2013 yet her accountant says that she can only climb up to $300 and others have to be depreciated. Can we please help?<br \/>\nRobyn, we will. We\u2019ll ask that question of Ed Chan.<br \/>\nEd, what would be your answer to Robyn?<br \/>\n<b>Ed:<\/b>\u00a0 I\u2019m not familiar with the $800 limit that you made reference to. When you spend money on a property, it\u2019s generally to bring the property back to what its original conditions were, and it falls into two categories. It\u2019s either repairs and maintenance or it\u2019s capital.<br \/>\nIf it\u2019s repairs and maintenance, it\u2019s allowed fully as a tax deduction. The definition of repairs and maintenance is to replace what was there with a similar material. For example, it was a wooden fence and you replaced it with another wooden fence; that\u2019s deemed a repair, so it\u2019s 100% deductible.<br \/>\nHowever, if you improve the fence from a wooden fence to a brick fence, then that\u2019s an improvement on what you had before, and that constitutes a capital improvement. With capital improvements, you can only depreciate the item, and the depreciation rates range between 2.5% to about 30%. Over a five-year period, you\u2019ll be able to claim the whole lot back.<br \/>\n<b>Kevin:<\/b>\u00a0 There you go, Robyn. I hope that\u2019s clarified for you. I\u2019m sure it has.<br \/>\nEd Chan from Chan &amp; Naylor, thank you so much for your time. It\u2019s always great to have you on the show. Thanks, mate.<br \/>\n<b>Ed:<\/b>\u00a0 Thanks for having me, Kevin.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; Ed Chan joins us to answer a question from Robyn. She is confused about some conflicting advice on the available tax benefits on replaced items in an investment property. &nbsp; Transcript: Kevin:\u00a0 We\u2019re going to answer a question on the show now that came&#8230;<\/p>\n","protected":false},"author":176692471,"featured_media":10113,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[34,10,11,13,36,17,22,25],"tags":[101],"class_list":["post-10112","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance-topic","category-kevin-turner-sponsored-channels","category-kevin-update","category-latest-story","category-property-investment-topic","category-property-investment","category-research-topic","category-sponsored-channels","tag-podcast"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The facts about tax benefits on replacement items - Ed Chan - Realty Talk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/channels.realty.com.au\/realtytalk\/the-facts-about-tax-benefits-on-replacement-items-ed-chan\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The facts about tax benefits on replacement items - Ed Chan - Realty Talk\" \/>\n<meta property=\"og:description\" content=\"&nbsp; Ed Chan joins us to answer a question from Robyn. She is confused about some conflicting advice on the available tax benefits on replaced items in an investment property. &nbsp; Transcript: Kevin:\u00a0 We\u2019re going to answer a question on the show now that came...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/channels.realty.com.au\/realtytalk\/the-facts-about-tax-benefits-on-replacement-items-ed-chan\/\" \/>\n<meta property=\"og:site_name\" content=\"Realty Talk\" \/>\n<meta property=\"article:published_time\" content=\"2016-12-12T23:00:01+00:00\" \/>\n<meta name=\"author\" content=\"rolanrush\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rolanrush\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-facts-about-tax-benefits-on-replacement-items-ed-chan\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-facts-about-tax-benefits-on-replacement-items-ed-chan\\\/\"},\"author\":{\"name\":\"rolanrush\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/384a57ac9e52cb9bf19896cb15eaa52d\"},\"headline\":\"The facts about tax benefits on replacement items &#8211; Ed Chan\",\"datePublished\":\"2016-12-12T23:00:01+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-facts-about-tax-benefits-on-replacement-items-ed-chan\\\/\"},\"wordCount\":454,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-facts-about-tax-benefits-on-replacement-items-ed-chan\\\/#primaryimage\"},\"thumbnailUrl\":\"\",\"keywords\":[\"podcast\"],\"articleSection\":[\"Finance\",\"Kevin Turner\",\"Kevin's Update\",\"Latest Stories\",\"Property Investment\",\"Property Investment Topics\",\"Research\",\"Sponsored Channels\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-facts-about-tax-benefits-on-replacement-items-ed-chan\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-facts-about-tax-benefits-on-replacement-items-ed-chan\\\/\",\"url\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-facts-about-tax-benefits-on-replacement-items-ed-chan\\\/\",\"name\":\"The facts about tax benefits on replacement items - Ed Chan - Realty Talk\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-facts-about-tax-benefits-on-replacement-items-ed-chan\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-facts-about-tax-benefits-on-replacement-items-ed-chan\\\/#primaryimage\"},\"thumbnailUrl\":\"\",\"datePublished\":\"2016-12-12T23:00:01+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/384a57ac9e52cb9bf19896cb15eaa52d\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-facts-about-tax-benefits-on-replacement-items-ed-chan\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-facts-about-tax-benefits-on-replacement-items-ed-chan\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-facts-about-tax-benefits-on-replacement-items-ed-chan\\\/#primaryimage\",\"url\":\"\",\"contentUrl\":\"\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/the-facts-about-tax-benefits-on-replacement-items-ed-chan\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"The facts about tax benefits on replacement items &#8211; Ed Chan\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#website\",\"url\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/\",\"name\":\"Realty Talk\",\"description\":\"Your Trusted Voice For Property Investing. 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