Private ruling: Rental deductions
Date of advice: 29 July 2020
Published: August 2020
Ruling period: Year ending 30 June 2020
Date scheme commenced: 1 July 2019

Ruling: Q1: Are you entitled to a deduction for the cost of replacing the roof of your rental property as a repair? | A1: Yes. Yourexpenses meet the requirements 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 in XXXX. The property is in your name. The property has been rented since you purchased it. When you purchased the rental property, the roof was in good condition. Over the years the roof has deteriorated, and it was identified by a roofing contractor that it needed replacing as it was not structurally satisfactory, has vertical cracks and many patches. It required a structural upgrade, new roofing material, insulation and cyclonic tie downs in order to meet current council requirements. The original roof was made of asbestos and it has been replaced with Colourbond. The roof restoration has been completed and you have incurred expenses for the cost.

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