| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your written advice
Authorisation Number: 1051432310887
Date of advice: 25 September 2018
Ruling
Subject: Rental deductions
Question
Are you entitled to a repairs deduction for work carried out to your investment property to remove mould?
Answer
Yes. It is accepted that the work performed was to restore the efficiency of function of the property and did not provide any substantial improvements. Therefore the expenses you incurred are considered expenses for 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 an investment property that was already tenanted.
You were informed there was significant mould damage throughout the property.
You hired a contractor to inspect the extent of the damage to the property, who reported the need to repair damage to the property.
The tenants remained in the property while the repairs were carried out.
The property was repaired at your expense.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 25-10