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Edited version of private advice
Authorisation Number: 1052062288597
Date of advice: 25 November 2022
Ruling
Subject: Rental property expenses - repairs
Question
Are you entitled to a deduction, under section 25-10 of the Income Tax Assessment Act 1997, for the expenses incurred in replacing the roof on the property?
Answer
Yes.
The Commissioner accepts that the works completed meet the requirements provided in Taxation Ruling TR 97/23 Income tax: deductions for repairs to be deductible as a repair.
You are therefore entitled to a deduction for the expenses under section 25-10 of the Income Tax Assessment Act 1997, in the year that the expenses were incurred.
This ruling applies for the following period:
The income year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You own a property that is used solely for the purpose of generating rental income.
You have owned the property for a number of years.
During a recent inspection, you noticed damage to the property's ceiling and arranged for a professional inspection to be carried out.
The property's roof had rusted nails and was leaking.
You were advised that the best course of action would be to re-clad the property's roof (the works).
You provided a copy of the purchase invoice, engineering certificate and plans for the works.
The cost of the works was $XX XXX. You incurred this cost in the income year ending 30 June 20XX.
The works were completed during the income year ending 30 June 20XX.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 25-10