Private ruling: Rental property expenses
Date of advice: 4 December 2020
Published: January 2021
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Can you claim an immediate deduction for the work done to rectify the damaged sewage pipes at your rental property? | A1: Yes. The work done merely repaired damage to the property without changing its character. Your expenses meet the requirements in Taxation Ruling 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 property approximately XX years ago. You began using the property for income producing purposes almost XX years ago. You engaged a plumber who reported that there were several sections of dislodged and cracked pipes in the earthenware sewage pipes. Work was carried out to reline the damaged pipes. The property remained tenanted whilst the work was carried out.

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