QUESTION 1 Jasmine purchased a rental property in the 2015 year and rented it until the end of the 2018 year. During the 2018 year, she moved into the property. On 1 July 2020, Jasmine moved out of the property and commenced renting it again. She still has the depreciation schedule she had prepared when she purchased the property and she has not replaced any assets. Can she claim depreciation and the capital works deduction in the 2022 year, based on her existing depreciation schedule?

a. Jasmine can claim the capital works deduction based on the original schedule, but she will not be able to claim the decline in value of the depreciating assets as she has used them for private purposes in an earlier income year (second hand assets)

b. Yes, Jasmine can claim the capital works deduction and decline in value based on the original schedule.

c. No, Jasmine will have to have a new depreciation schedule prepared

Question 2

Remy has been renting his property for a number of years. During 2022 the tenants vacated the property so he decided to move into it. The property was new when he purchased it, but after years of renting there were some repairs required. Remy moved into the property on 12 April 2022. Which of the following will be able to be claimed by Remy as an immediate deduction (in the year incurred)? All these amounts relate to items damaged by the tenants.

a. New oven purchased 12 April 2022 to replace the old oven damaged by tenants.

b. Travel to tip to remove rubbish left by tenant (trips occurred 12 to 16 February 2022)

c. Painting of exterior of house on 14 June 2022

d. Invoice paid in 18 July 2022 for repairs to part of the fence damaged by tenants