Edited version of private advice

Authorisation Number: 1051886687984

Date of advice: 17 August 2021

Ruling

Subject: Rental - deductions

Question

Are your expenses deductible as repairs?

Answer

Yes. 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.

This ruling applies for the following period:

Year ending 30 June 2020

The scheme commences on:

1 July 2019

Relevant facts and circumstances

You purchased a home over 20 years ago. For some years the property has been continuously available for rent on normal commercial terms with a local real estate agent. Apart from short intervals between tenants it has been continuously rented.

The property has a wooden deck extending from the house to a veranda. The deck was in good condition when you purchased the property. This deck required repairs and you accepted a quote from a local builder to effect repairs. The repairs consisted of:

1.               Replacement of a section of the deck at one corner.

2.               Uprights and capping of the balustrade.

3.               Patching of guttering which was leaking onto the deck.

4.               Repairs to the footing of the risers and the treads of the access stairs.

5.               Replacement of that part of the pool decking which deteriorated to a hazardous extent.

6.               Replacing rotten uprights of pool fencing.

7.               A portion of the rear deck which had also rotted.

The overall cost of the repairs exceeded the original quote.

All work undertaken was essential for the safety of tenants and the dimensions of all structures are unaltered.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 25-10