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Ruling
Subject: Rental property expenses
Question
Are you entitled to a deduction for painting and repairs?
Answer
Yes.
This ruling applies for the following period
Year ended 30 June 2011
The scheme commenced on
1 July 2010
Relevant facts
You have had a rental property since 2003.
The property has been rented at commercial rates for the whole time.
You have painted and undertaken repairs to the pergola.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 25-10
Reasons for decision
Section 25-10 of the Income Tax Assessment Act 1997 (ITAA 1997) allows a deduction for expenditure on repairs to income producing premises, provided the expenditure is not capital in nature.
Taxation Ruling TR 97/23 explains deductions for repairs. It states that in section 25-10 the word 'repairs' has its ordinary meaning, which is the remedying or making good of defects in, damage to, or deterioration of, property. It involves restoration of the efficiency of function of the property without changing its character.
In your case, you have painted the property and undertaken repairs to the pergola. As the work done makes good deterioration of the property, you are entitled to a deduction for the painting and repairs.