Private ruling: Rental deductions - repairs
Date of advice: 18 October 2023
Published: 27 November 2023
Ruling period: Year ended XX June 20XX
Date scheme commenced: XX July 20XX

Ruling: Q1: Is the cost of replacing the gutters, downpipes and the roof restoration at your rental property deductible as a repair under section 25-10 of the Income Tax Assessment Act 1997 ? | A1: Yes. Your expenses meet the requirements of a repair in Taxation Ruling TR 97/23 and are deductible. Further information about repairs can be found by searching 'QC 23635' on ato.gov.au.

Relevant facts and circumstances: You purchased a rental property. Water leaks were discovered at the rental property in several places. You used insurance to cover the costs of fixing some of these leaks, however insurance did not cover fixing the roof or gutters. You engaged a roof plumber who inspected the roof and temporarily fixed the leaks using silicone. You engaged a company to undertake the roof restoration which included cleaning, applying primer and paint to the roof. You engaged a company for the gutter and downpipe replacement which included replacing the rusted material with PVC. You provided a copy of the initial building inspection report which provided that there was no damage to the roof or gutters and minimal damage to the downpipes prior to you purchasing the property. The rental property has always been genuinely available for rent in the 20XX financial year and when the repairs were undertaken, the rental property remained tenanted.

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