Private ruling: Rental property expenses - repairs
Date of advice: 25 November 2022
Published: 23 January 2023
Ruling period: The income year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you entitled to a deduction, under section 25-10 of the Income Tax Assessment Act 1997 , for the expenses incurred in replacing the roof on the property? | A1: Yes. The Commissioner accepts that the works completed meet the requirements provided in Taxation Ruling TR 97/23 Income tax: deductions for repairs to be deductible as a repair. You are therefore entitled to a deduction for the expenses under section 25-10 of the Income Tax Assessment Act 1997, in the year that the expenses were incurred.

Relevant facts and circumstances: You own a property that is used solely for the purpose of generating rental income. You have owned the property for a number of years. During a recent inspection, you noticed damage to the property's ceiling and arranged for a professional inspection to be carried out. The property's roof had rusted nails and was leaking. You were advised that the best course of action would be to re-clad the property's roof (the works). You provided a copy of the purchase invoice, engineering certificate and plans for the works. The cost of the works was $XX XXX. You incurred this cost in the income year ending 30 June 20XX. The works were completed during the income year ending 30 June 20XX.

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