Private ruling: Rental property deductions
Date of advice: 27 April 2021
Published: July 2021
Ruling period: Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you entitled to a deduction for the costs associated with underpinning your rental property? | A1: Yes. Based on the information provided to the Commissioner the costs associated with the underpinning of your rental property are an allowable deduction under Section 25-10 of the Income Tax Assessment Act 1997 .

Relevant facts and circumstances: You purchased a rental property in 20YX. The property was built in 19YY. There was no damage to the property when you purchased it. In 20XY some work was done to underpin part of the property. In 20XX your tenants reported some more damage. You undertook further work to underpin the foundation.

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