Legume
1) Whether the renovations are expensed or capitalised depends on the type of renovations
I was implying the type of renovations was not "EXTENSIVE" but "EXPENSIVE"
2) On a per outlet basis, the expenditure is small
how small is small to you? will you appreciate a "SMALL" dividend, something like 0.5c???
3) Expensing items, where you can, reduces current tax.
again, see my reply 1. if using SBB METHOD, all Sydney Melbourne wouldn't need pay a cent if they bought a investment property, they can just keep doing "EXTENSIVE" reno to offset net rent and main income.
4) If GT don't agree to expensing the renovations, then the company will have to capitalise it on the books... will you be happy then?
if they did CAPITALISE on the book, then they lose the excuse not to distribute dividend, can you get it???
reason I said this bit was hardest to swallow is you used a fraudulent excuse to cover something probably quite obvious now.
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