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Edited version of private advice
Authorisation Number: 1052180887836
Date of advice: 18 October 2023
Ruling
Subject: Rental deductions - repairs
Question
Is the cost of replacing the gutters, downpipes and the roof restoration at your rental property deductible as a repair under section 25-10 of the Income Tax Assessment Act 1997?
Answer
Yes. Your expenses meet the requirements of a repair in Taxation Ruling TR 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 :
Year ended XX June 20XX
The scheme commenced on:
XX July 20XX
Relevant facts and circumstances
You purchased a rental property.
Water leaks were discovered at the rental property in several places.
You used insurance to cover the costs of fixing some of these leaks, however insurance did not cover fixing the roof or gutters.
You engaged a roof plumber who inspected the roof and temporarily fixed the leaks using silicone.
You engaged a company to undertake the roof restoration which included cleaning, applying primer and paint to the roof.
You engaged a company for the gutter and downpipe replacement which included replacing the rusted material with PVC.
You provided a copy of the initial building inspection report which provided that there was no damage to the roof or gutters and minimal damage to the downpipes prior to you purchasing the property.
The rental property has always been genuinely available for rent in the 20XX financial year and when the repairs were undertaken, the rental property remained tenanted.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 25-10