Private ruling: Rental property - deductions
Date of advice: 20 February 2019
Published: May 2019
Ruling period: Year ended 30 June 2018
Date scheme commenced: 1 July 2017

Ruling: Q1: Are you entitled to an immediate deduction under section 25-10 of the Income Tax Assessment Act 1997 (ITAA 1997) for the expenditure you incurred to replace the windows of your rental property? | A1: Yes. Your expenses meet the requirements in Taxation Ruling TR 97/23 and are deductible. Further information about repairs can be found by searching 'QC 55249' on ato.gov.au

Relevant facts and circumstances: You solely purchased a property on XX/XX/19XX and the property is managed by an agent. You have rented the property out for more than 20 years and it is rented at market value. The property was considerably damaged in a severe weather event. The damage that occurred has contributed to water leaking in, wind whistling noises, rattling etc from the windows. You have incurred expenditure to have the windows replaced. The windows being removed are aluminium framed windows and are being replaced by aluminium framed windows. The windows are a replacement and do not require any structural work and are the latest type assessed as being most suitable for the height of the building and having the latest regulations taken into account.

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