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Edited version of private advice
Authorisation Number: 1052383041192
Date of advice: 14 May 2025
Ruling
Subject: Rental property deductions - repairs
Question 1
Can you claim the cost of repairs to your rental property under section 25-10 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer
Yes.
Your expenses meet the requirements in Taxation Ruling TR 97/23 Income tax: deductions for repairs and are immediately deductible. Further information about repairs can be found by searching 'QC 55249' on ato.gov.au.
Question 2
Can you claim the cost of repairs which were completed in-between rental periods under section 25-10 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer
Yes.
The property was available for rent prior to the repairs being undertaken and available for rent again after these repairs were undertaken. It is accepted that repairs need to be carried out and at certain times, the property cannot be tenanted.
This ruling applies for the following period:
Year ended DD MM YYYY
The scheme commenced on:
DD MM YYYY Relevant facts and circumstances
The house was inspected by a building inspector at the time of acquisition and was deemed free of any major defects.
The property has been used for income producing purposes.
The property is located at XX XX XX (the property).
The property has always been owned by you since you purchased the property in DD MM YYYY.
The property was initially rented out for the period DD MM YYYY up until DD MM YYYY.
Building works/repairs commenced in DD MM YYYY and were completed in DD MM YYYY.
The property was rented immediately before it was deemed unsafe and the tenants moved out.
The property recommenced being available and advertising for tenants from DD MM YYYY when the building works/repairs were completed.
You have advised the property was listed (advertised) as being available on DD MM YYYY.
You have also advised the property was marked as leased on DD MM YYYY.
The building works were all invoiced and paid in full during the period DD MM YYYY to DD MM YYYY.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 25-10
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