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Edited version of private advice
Authorisation Number: 1051648187283
Date of advice: 17 March 2020
Ruling
Subject: Rental property deductions
Question
Is the cost of repairing a large crack in the concrete slab using a resin filler deemed a repair under section 25-10 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer
Yes, this deduction is a repair as the work did not change the essential character of the slab.
This ruling applies for the following period:
30 June 2019
The scheme commences on:
1 July 2018
Relevant facts and circumstances
You purchased your rental property in XX about 10 years ago.
You hold 100% ownership in this property.
This property has been actively rented for a number of years.
In late 2018, you discovered repairs were required to the cement slab due to an ongoing sewer pipe leak which caused a fracture in the floor slab.
You engaged a firm to assess the damage and were quoted in January 2019 on the correction of the damage.
The work was performed and paid for in the financial year.
Relevant legislative provisions
Income Tax Assessment Act 1997 (ITAA 1997) Section 25-10