Private ruling: Rental property deductions
Date of advice: 17 March 2020
Published: May 2020
Ruling period: 30 June 2019
Date scheme commenced: 1 July 2018

Ruling: Q1: Is the cost of repairing a large crack in the concrete slab using a resin filler deemed a repair under section 25-10 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes, this deduction is a repair as the work did not change the essential character of the slab.

Relevant facts and circumstances: You purchased your rental property in XX about 10 years ago. You hold 100% ownership in this property. This property has been actively rented for a number of years. In late 2018, you discovered repairs were required to the cement slab due to an ongoing sewer pipe leak which caused a fracture in the floor slab. You engaged a firm to assess the damage and were quoted in January 2019 on the correction of the damage. The work was performed and paid for in the financial year.

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