Private ruling: Rental property deductions
Date of advice: 30 March 2021
Published: May 2021
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Is a special contribution payment you made to the building's body corporate deductible under section 25-10 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes. The special contribution payment was incurred in relation to the works carried out for remediation to the building your rental property is in. The proposed works do not alter the character or functionality of the property and will restore the property to its original condition. Accordingly, you are eligible to claim a deduction for the repairs in the year you incur the special levy under section 25-10 of the Income Tax Assessment Act 1997.

Relevant facts and circumstances: You own a unit which is rented out, this is the Property. The building the Property is in suffered damage. The body corporate tendered to have the required remediation work completed. The owners of the units in this building voted to accept a tender and split the payment across all unit holders. Your share of this payment is $XX, which you paid to the body corporate in the year ended 30 June 20XX.