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Edited version of private advice
Authorisation Number: 1051981027704
Date of advice: 12 May 2022
Ruling
Subject: Deductions - rental property expenses - painting
Question
Are you entitled to a deduction for costs associated with painting the exterior of your rental property under Section 25-10 of the Income Tax Assessment Act 1997?
Answer
Yes. Your expenses meet the requirements in Taxation Ruling TR 97/23 and are deductible.
This ruling applies for the following periods:
Year ended 30 June 20XX
Year ended 30 June 20XX
The scheme commences on:
01 July 20XX
Relevant facts and circumstances
Sometime ago you purchased a property.
The property was rented out from the time of acquisition and has always been used for income producing purposes.
The property consists of part timber and brick.
To ensure the property continues to be marketable for advertising and attracting future tenants, and to ensure the overall appearance of the property remains tenantable, it is your intention to repaint the entire property with a fresh coat of paint.
The state of the timber portions and other areas of the house externally is such that the paint is peeling off.
The damage/deterioration incurred throughout the period it was being rented by you.
You will continue use the property for income producing purposes after painting.
The total value of the quote for repainting costs was $XX,XXX.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 25-10
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