Private ruling: Income Tax - rental deductions
Date of advice: 4 October 2019
Published: November 2019
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you entitled to a deduction for your share of the cost of making rectifications to a pool at your rental property? | A1: Yes. Based on the information provided, the rectifications you have made are repairs and are not capital in nature. Therefore, that expense is immediately deductible under section 25-10 of the Income Tax Assessment Act 1997 . More information on what constitutes a repair can be found on our website ato.gov.au and searching for QC 55664.

Relevant facts and circumstances: You are both individuals. You purchased a property (the property) and began renting it out the next day. Your property manager inspected the property prior to the commencement of the lease and confirmed that the pool was clean, undamaged and working. Approximately X months into the lease you were advised that the pool had been damaged. You engaged a pool company to examine the problem. The pool company advised that the work required on the pool was due to the damage caused during the tenancy and not due to general wear and tear. The damage did not exist at the time the property was acquired. The damage occurred during the period the property was tenanted. The work rectified the damage that had occurred.

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