Private ruling: Deductions - rental property expenses
Date of advice: 27 November 2023
Published: 15 January 2024
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you entitled to a deduction for costs associated with painting sections of the interior and exterior of your rental property to attend to wear and tear under Section 25-10 of the Income Tax Assessment Act 1997 ? | A1: 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' on ato.gov.au

Relevant facts and circumstances: Sometime ago you purchased a property. During the year, your tenant vacated the property. The tenant had rented the property for some time, and during that time the property had not had any painting repairs completed. You received a recommendation that exterior and interior painting would be required to attend to wear and tear, to ensure the property continues to be marketable for advertising and attracting future tenants. The scope of works performed were to parts of both the exterior and interior of the property where visible wear and tear to the paint was evident. The total value of the cost for repainting was $XX. After the painting works were completed, the property was tenanted again. The property is being rented at market value.

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