Private ruling: Deductions - rental property expenses - painting
Date of advice: 12 May 2022
Published: July 2022
Ruling period: Year ended 30 June 20XX | Year ended 30 June 20XX
Date scheme commenced: 01 July 20XX

Ruling: Q1: Are you entitled to a deduction for costs associated with painting the exterior of your rental property 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.

Relevant facts and circumstances: Sometime ago you purchased a property. The property was rented out from the time of acquisition and has always been used for income producing purposes. The property consists of part timber and brick. To ensure the property continues to be marketable for advertising and attracting future tenants, and to ensure the overall appearance of the property remains tenantable, it is your intention to repaint the entire property with a fresh coat of paint. The state of the timber portions and other areas of the house externally is such that the paint is peeling off. The damage/deterioration incurred throughout the period it was being rented by you. You will continue use the property for income producing purposes after painting. The total value of the quote for repainting costs was $XX,XXX.

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