Private ruling: Rental property deductions
Date of advice: 28 April 2020
Published: June 2020
Ruling period: Year ended 30 June XXXX
Date scheme commenced: 1 July XXXX

Ruling: Q1: Are you entitled to a deduction for the cost of replacing the roof of your rental property 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 23635 at ato.gov.au

Relevant facts and circumstances: You have owned an investment property and used it to earn rental income at xxxx xxx since xxxx xxxxx The property is approximately xxx years old The tiles on the roof have deteriorated which is causing damage to the ceiling due to water coming inside The deterioration of the roof tiles was such that a replacement roof was required The type of concrete tile originally on the roof could not be replaced as they are no longer manufactured. The roof tiles & gutters were replaced by colour bond corrugated iron. This was less expensive than replacement with roof tiles. An invoice was issued to xxxxx for the roof replacement dated xxxxxx for $ xxxxxxxx including GST by xxxxxxx

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