Private ruling: Rental - deductions
Date of advice: 21 December 2020
Published: February 2021
Ruling period: Year ending 30 June 2021
Date scheme commenced: 1 July 2020

Ruling: Q1: Are the repair expenses for your rental property deductible under section 25-10 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes. The interest expenses you incur relate to your rental property and are deductible. Further information about rental property expenses can be found by searching 'QC 55249' on ato.gov.au

Relevant facts and circumstances: You purchased a rental property in late 20XX. The property is in your name. The property has been rented since you purchased it. When you purchased the rental property, it was in good condition. Your tenants recently identified a problem with sliding doors. You arranged for a contractor to investigate the problem and the contractor visited the property in mid-20XX. The contractor suggested that you engage a structural engineer to survey the property and you accepted this advice. Two weeks later a firm of engineers visited the property and provided a report recommended that the foundations required underpinning. The provided a quote for repairs of $XXX. The underpinning was completed recently, and you have incurred expenses for the cost.

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