Private ruling: Rental repair deduction
Date of advice: 12 April 2024
Published: 27 May 2024
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Can you claim a deduction for the cost of the work completed on the shop front of your rental property? | A1: Yes. Repair costs are deductible where they are incurred during the period the property is held for income producing purposes and are attributable either to damage that occurs during your income producing use of the property or to defects that emerge during that time.

Relevant facts and circumstances: The property is located at XXXX (the property). The property was rented (or genuinely available to rent) during the financial year the costs were incurred. The shop front window of the property needed to be replaced as it was cracked, and it was a safety concern for the public. The window damage caused movement to the front door of the property and the locks were not aligned, meaning the shop was unable to be locked. On DD MM 20YY, an invoice was issued for the repair work performed by XXXX for $XX,XXX.XX. You paid for the work done yourself and received no insurance compensation.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 25-10