Rental Property

sarva
sarva Registered Posts: 13 Regular contributor ⭐ ? ⭐
I need to know the following expences are revenue expenditure.

1.replace fire doors to normal doors for firesafety .
2.Partition wall to make sepeate room.
3 Install new shower in a cubord space.

Please help me.
Thanks
Sarva

Comments

  • PGM
    PGM Registered Posts: 1,954
    sarva wrote: »
    I need to know the following expences are revenue expenditure.

    1.replace fire doors to normal doors for firesafety .
    2.Partition wall to make sepeate room.
    3 Install new shower in a cubord space.

    Please help me.
    Thanks
    Sarva

    I'd say 2 and 3 capital, new building additions.

    Could possibly argue 1, does the door need replacing anyway?
  • T.C.
    T.C. Registered, Tutor Posts: 1,448
    I would agree. New room and new shower area are capital expenses for definite. Fire doors are, in theory, capital expenses, but you could get away with revenue.
  • ijaccounting
    ijaccounting Registered Posts: 9 Regular contributor ⭐ ? ⭐
    Rental Property

    Yes I would strongly agree 2 and 3 are capital, enhancing the property and en endurance benefit for long time.
    concerning 1 its a replacement, it could be argued that is a revenue expenditure as to restore to its original condition and this irrespective if its fitted with a better technology;surely the building materials got advanced in these days.

    I hope this help.

    isam
    kind regards
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