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Edited version of private advice
Authorisation Number: 1051787680729
Date of advice: 4 December 2020
Ruling
Subject: Rental property expenses
Question
Can you claim an immediate deduction for the work done to rectify the damaged sewage pipes at your rental property?
Answer
Yes. The work done merely repaired damage to the property without changing its character. Your expenses meet the requirements in Taxation Ruling 97/23 and are deductible. Further information about repairs can be found by searching 'QC 23635' on ato.gov.au
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 a property approximately XX years ago.
You began using the property for income producing purposes almost XX years ago.
You engaged a plumber who reported that there were several sections of dislodged and cracked pipes in the earthenware sewage pipes.
Work was carried out to reline the damaged pipes.
The property remained tenanted whilst the work was carried out.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 25-10