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Edited version of private advice
Authorisation Number: 1051596853398
Date of advice: 22 October 2019
Ruling
Subject: Rental deductions
Question
Are you entitled to a deduction for the cost of underpinning a corner of your rental property?
Answer
Yes.
Based on the facts you have provided, we can conclude that costs incurred in relation to the underpinning of your rental property will restore the property to its original condition. This does not materially alter the character or functionality of the rental property. Accordingly you are eligible to claim a deduction in relation to the repair under section 25-10 of the Income Tax Assessment Act 1997. Further information regarding "Income tax: deductions for repairs" is addressed in ATO Taxation Ruling TR 97/23
This ruling applies for the following periods:
Year ended 30 June 2019
Year ending 30 June 2020
The scheme commences on:
1 July 2018
Relevant facts and circumstances
You own an investment property which required works to underpin one corner of the dwelling.
You have rented out the property for a number of years.
The property was inspected and the issue identified during the 2018-19 income year.
The property continues to be rented.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 25-10