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Edited version of private advice
Authorisation Number: 1051785752740
Date of advice: 30 November 2020
Ruling
Subject: Rental property expenses
Question
Is the cost of bathroom works to the property deductible as a repair as per section 25-10 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer 1
Yes. The Commissioner accepts that the works completed meet the requirements of Taxation Ruling TR 97/23 Income tax: deductions for repairs.
This ruling applies for the following period:
Year ended 30 June 2020
The scheme commences on:
1 July 2019
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
You purchased the property in XXXX.
You did not obtain a building inspection report at the time of acquisition.
The property became your main residence at acquisition.
The property was then rented to tenants from XXXX.
You have earnt assessable income from the property that has been reported on your income tax returns.
During a routine inspection your property agent reported that there appeared to be water damage to the walls in both showers of the property.
Your agent provided you a detailed property inspection report with photos of the water damage.
The tenants moved out of the property at the end of their lease leaving the property vacant.
During this time, your agent arranged for both the main bathroom and ensuite bathroom showers repaired.
The works were completed in XXXX and the property was rented to new tenants in XXXX.
You have provided an invoice that details the works performed on the property.
The total of the invoice was $ XXXX.
You do not have building insurance for the property, only landlord insurance.
Relevant legislative provisions
Income Tax Assessment Act1997section 25-10
Income Tax Assessment Act 1997section 110-25