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Edited version of private advice
Authorisation Number: 1051980405679
Date of advice: 18 May 2022
Ruling
Subject: Deductions - rental property
Question
Are the expenses, in relation to the replacement of the windows and door frames in your apartment allowable as an immediate deduction in the relevant years incurred?
Answer
Yes,the window and door frame replacements are not considered to be a renewal or reconstruction of an entirety, they are not initial repairs or an improvement and the expense is in respect to an income producing asset.
The expenses meet the requirements of a repair in Taxation Ruling TR 97/23 Income tax: deductions for repairs and are deductible under section 25-10 of the Income Tax Assessment Act 1997. Further information about repairs can be found by searching 'QC 23635' on ato.gov.au
This ruling applies for the following periods:
Year ending 30 June 20xx
Year ending 30 June 20xx
The scheme commences on:
February 20xx
Relevant facts and circumstances
You were transferred 100% ownership of the property.
The property has been rented out on a market rate basis to tenants.
The property is managed by the body corporate.
The body corporate advised you of structural issues (timber rot) on the windows and door frames, which has occurred over several years.
The window and door frames will be replaced with aluminium frames.
The window glass will be replaced with single glazed windows (same as original).
The payment for the windows and door frames, will be split over 2 financial years
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 8-1
Income Tax Assessment Act 1997 Section 25-10