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Edited version of private advice
Authorisation Number: 1051512694715
Date of advice: 7 May 2019
Ruling
Subject: Rental expenses
Question
Are your expenses deductible outright as repairs?
Answer
Yes.
Your expenses are not for an initial repair or an improvement. Also, you are renewing or replacing a part of a whole rather than replacing an entirety. Therefore your expenses meet the requirements in Taxation Ruling TR 97/23 and are deductible. Further information about repairs can be found by searching 'QC 55249' on ato.gov.au
If you receive an insurance payout for the repairs then this amount is an assessable recoupment and must be included in your assessable income.
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You own a rental investment property.
You have owned the investment property since xxxx.
The property was bought new with no defects.
In late xxxx the adjacent property decking collapsed which prompted you to have your rental property deck checked.
Your rental property deck was found to be damaged and required restoration to its original state.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 25-10