Private ruling: Rental deductions
Date of advice: 29 July 2019
Published: October 2019
Ruling period: Year ended 30 June 2019
Date scheme commenced: 1 July 2018

Ruling: Q1: Can you claim the associated expenses related to your rental property for the financial year ended 2019? | A1: Yes, the Commissioner accepts that your property was genuinely available for rent for the relevant period and therefore your associated expenses related to your rental property are deductible. Further information about rental property expenses can be found by searching 'QC 55249' on ato.gov.au

Relevant facts and circumstances: You acquired a rental property after 20 September 1985. During the relevant period, the property was under a long term lease contract. You put your property on the market before the relevant period ended. Whilst the property was on the market the tenant submitted a notice of termination to the agent prior to the lease contract ended. After the tenant vacated you engaged the services of several real estate agents to assist you in finding a new tenant. In addition to the ongoing expenses, you had legal expenses associated with the dispute with strata management of the apartment and the contract of sale and repairs expenses. You provided evidence of the sale and rental instructions and repairs invoices to the exiting tenant.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 8-1 | Income Tax Assessment Act 1997 section 25-10 | Income Tax Assessment Act 1997 Division 40 | Income Tax Assessment Act 1997 Division 43