Replacing oven
Question from Shane updated on 7th June 2013:
I had a chattels valuation done some years ago and have been claiming each year. I have just had a oven blow, it can't be fixed. I have replaced the oven with a similar but more modern one. The old oven still has a book value for just oven $200. How do I treat this at tax time?
Our expert Mark Withers responded:
The old oven would be disposed of at zero ralue leaving you with a deductible loss on disposal of its residual book value. For consistency, you would then look to capitalise the replacement oven and begin depreciating this afresh.
Mark Withers and his team at Withers Tsang & Co specialise in advising on property related transactions, valuation and restructure services and tax planning.
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