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Further, Nick incurred additional expenses in relation to his rental properties as follows: ...

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Accounting

Further, Nick incurred additional expenses in relation to his rental properties as follows:

Expense ($)
Repairs to the roof of the rental property following a severe storm 6,000
Replacement of the central air conditioning system in the rental property 5,000

Based on the above facts and relevant tax laws, how should you treat the following expenses?

A Fully deduct the air conditioning system related costs while only claiming the decline in value of the roof according to its effective life.
B Fully deduct the roof related costs while only claiming the decline in value of the air conditioning system according to its effective life.
C Include the full amount of $11,000 as repairs and maintenance expense
D As they are both very expensive items, they are capital in nature and only the decline in value according to its effective life for both items can be claimed.

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