Private ruling: Deductions - repairs
Date of advice: 13 July 2023
Published: 4 September 2023
Ruling period: Year ended 30 June 2023
Date scheme commenced: 1 July 2022

Ruling: Q1: Are you entitled to a deduction for the cost of repairing the roof on your business premises under section 25-10 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes, you can claim the deduction for the expenses incurred in repairing the roof of the property under section 25-10 of the ITAA 1997 which provides that expenditure incurred for repairs to premises held or used solely for the purpose of producing assessable income are deductible.

Relevant facts and circumstances: You purchased a property at a specified date as your main residence. At the time the property was acquired, the roof required some repair and restoration which was completed in the same year as you purchased the property. The roof extension was completed 3 years later. At a specified date, you relocated your business office to your home. All occupancy and running costs were apportioned based on floor space of the clinic. At a specified date, when the business office was relocated to the home, the roof was in good condition due to the previous works done and very minor maintenance was required. At a specified date you noticed the roof tiles were cracking and falling from the roof as well as deterioration of the roof timber structures. Investigations were conducted on the condition of the property and repair was not able to be completed due to the onset of COVID-19. You purchased a block of land during COVID-19, built a new home and relocated to your new property at a specified date and this has now been nominated as your main residence. Your business office remained and is now wholly operated from your former main residence. At a specified date, you noticed extensive damage to the roof and render and urgent repair was required. You provided us with details of the repairs what were completed. The works needed and subsequently performed at a specified date.

Relevant legislative provisions: Income tax Assessment Act 1997 section 8-1 | Income tax Assessment Act 1997 section 25-10