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Edited version of private advice
Authorisation Number: 1051802820065
Date of advice: 08 February 2021
Ruling
Subject: Rental expenses
Question 1
Are your expenses incurred in removing and replacing the external double doors of your rental property deductible as repairs?
Answer
Yes, we accept the replacement of the damaged doors constitutes a deductible repair rather than either an initial repair, the replacement of an entirety or an improvement. Further information about repairs can be found in Taxation Ruling TR 97/23 or by searching 'QC 23635' on ato.gov.
Question 2
Are your expenses incurred in removing and replacing the additional items listed in the facts, deductible as repairs?
Answer 2
Yes, we accept the removal and replacement of those items constitute deductible repairs.
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You purchased the Property on XX XXXX 20XX.
The Property was in good overall condition, suitable for renting, at the time you purchased the property.
In XXXX 20XX during an inspection you discovered there had been damage to the external double doors.
You engaged a builder to fix the doors. The builder informed you the damage to the doors required the doors to be replaced.
The damaged external double doors were replaced with new doors of the same type which cost approximately $X.
In XXXX 20XX the tenants reported further work which needed to be undertaken, and upon inspection, the builder carrying out this work found additional work was required such as replacing damaged window handles, fan and light switches, and tiles. This additional work totalled approximately $X.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 25-10
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