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Edited version of private advice
Authorisation Number: 1051890017738
Date of advice: 1 October 2021
Ruling
Subject: Rental property - repair or improvement
Question
Are you entitled to a deduction for the work done to the roof, flashing, gutters, downpipes and battens of your rental property as a repair?
Answer
Yes. Section 25-10 of the Income Tax Assessment Act 1997 allows a deduction for the cost of repairs to premises used solely for income producing purposes. In this instance, the replacement of part of the roof, gutters, downpipes, flashing and battens is considered a repair because the work merely restored the efficiency of function of the property.
This ruling applies for the following period:
Period ended 30 June 20XX
The scheme commences on:
1 July 202XX
Relevant facts and circumstances
You purchased the rental property in 20XX.
You engaged a roofing contractor to fix the leaking roof soon after it was brought to your attention.
The roof was made of corrugated iron and slate tiles.
You replaced the leaking corrugated iron roofing with the same material.
You replaced some of the leaking slate tiles with the same material.
You replaced some timber battens because they were rotten.
You replaced the gutters, downpipes and flashing because they were rusting.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 25-10
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