Private ruling: Rental property deductions
Date of advice: 5 February 2025
Published: 17 March 2025
Ruling period: Year ending 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you entitled to claim a deduction for bathroom repairs to your rental property under section 25-10 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes. The bathroom repairs were conducted to remediate the damage and deterioration to the shower. The repairs did not improve or change the bathroom in its entirety. As the property is solely used for the purpose of producing assessable income, you can claim a deduction for the bathroom repairs under section 25-10 of the ITAA 1997.

Relevant facts and circumstances: In May 20XX, you purchased and are the sole owner of a property. When you acquired the property, it was not a newly constructed dwelling and has been continually used for income producing purposes. During the 20XX income year the tenants raised concerns with the real-estate manager regarding the shower. The shower had continued to deteriorate since residing at the property and was becoming dangerous for the family to use. The real-estate manager further confirmed the rotting sub-frame of the shower tray and commenced requesting repair quotes on your behalf to rectify the issue. The tradesperson confirmed that the shower base needed to be repaired, and the following repairs were conducted: • The shower tray was removed along with the removal of asbestos walls. • The area was water-proofed and the shower floor was retiled. • The remaining floor, bathtub, vanity and walls were not altered

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