Private ruling: Deductions - rental property expenses
Date of advice: 19 December 2024
Published: 28 January 2025
Ruling period: Year ended DD/MM/20YY
Date scheme commenced: DD/MM/20YY

Ruling: Q1: Is the cost of repainting, and replacing the damaged glass panes in a window and shower screen, at your rental property immediately deductible as repairs under section 25-10 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes. Based on your circumstances and having considered Taxation Ruling TR 97/23 Income tax: deduction for repairs, it is accepted that the repainting and replacement of the damaged glass panes in the window and shower screen are repairs. | Q2: Is the new carpet in your rental property a depreciating asset with its cost deductible over its effective life under Division 40 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A2: Yes. Based on your circumstances and as per the Rental properties guide 2024, the carpet is considered to be a depreciating asset that is deductible over its effective life.

Relevant facts and circumstances: On DD/MM/20YY, you purchased a property at XXX (the property). You are the sole owner of the property. The property was first made available for rent in MM/20YY and has been rented continuously since this date. During 20YY, you attended to some issues that had occurred whist the property was being rented. You engaged tradespeople to undertake some internal and external repainting, replace damaged glass panes in a window and shower screen and laid a new carpet. The property is still currently being leased.

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