Private ruling: Rental property expenses
Date of advice: 26 June 2019
Published: August 2019
Ruling period: Year ending 30 June 2018
Date scheme commenced: 01 July 2017

Ruling: Q1: Are the works carried out to the garage of the investment property which involved the removal and replacement of asbestos affect material fully deductible as a repair? | 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 55249' on ato.gov.au

Relevant facts and circumstances: You own an investment property used to produce rental income. The single garage separate to the main residence was in need of repairs. The roofing and side walls contained asbestos sheets which had broken. The garage was also leaning, the window and entry door was rotted and the roller door did not open. To repair the garage the asbestos sheets were required to be removed by a qualified professional, the garage then needed to be straightened before the rest of the repairs could proceed. Once the asbestos was removed the garage was enclosed and the roof, garage door, window and entry door were all repaired. The garage was also painted. Repairs to the side gate were required so it could be locked. The purpose of the garage has not changed.

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