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Edited version of private advice
Authorisation Number: 5010066382809
Date of advice: 28 April 2020
Ruling
Subject: Rental property deductions
Question
Are you entitled to a deduction for the cost of replacing the roof of your rental property as a repair?
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 23635 at ato.gov.au
This ruling applies for the following period
Year ended 30 June XXXX
The scheme commences on:
1 July XXXX
Relevant facts and circumstances
You have owned an investment property and used it to earn rental income at xxxx xxx since xxxx xxxxx
The property is approximately xxx years old
The tiles on the roof have deteriorated which is causing damage to the ceiling due to water coming inside
The deterioration of the roof tiles was such that a replacement roof was required
The type of concrete tile originally on the roof could not be replaced as they are no longer manufactured.
The roof tiles & gutters were replaced by colour bond corrugated iron. This was less expensive than replacement with roof tiles.
An invoice was issued to xxxxx for the roof replacement dated xxxxxx for $ xxxxxxxx including GST by xxxxxxx
Relevant legislative provisions
Income Tax Assessment Act 1997 section 25-10