Private ruling: Rental property expenses
Date of advice: 14 February 2020
Published: March 2020
Ruling period: Year ending 30 June 2020
Date scheme commenced: 1 July 2019

Ruling: Q1: Are you eligible to claim a deduction for the replacement and certification of the stumps of your rental property? | A1: Yes. Taxation Ruling TR 97/23 explains the circumstances in which deductions for repairs are allowable. Your situation complies with requirements in TR 97/23, therefore, you are entitled to a deduction for the expenditure incurred to restump and certify your property under section 25-10 of the Income Tax Assessment Act 1997 .

Relevant facts and circumstances: You purchased a property which was approximately 50 years old, over 15 years ago. The property has been tenanted as a rental property since purchase. When you brought the property, the stumps were in good condition with no visible defects. Over more than 15 years, the stumps had deteriorated and were recently identified by an engineer as needing replacement. During a recent insurance claim an assessor deemed the property uninsurable until the stumps were restored. The stumps were restored with the modern equivalent of the original concrete, by a house raising company. The work was certified. No upgrades were made, and only the stumps were replaced.

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