Private ruling: Rental deductions
Date of advice: 25 September 2018
Published: November 2018
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Are you entitled to a repairs deduction for work carried out to your investment property to remove mould? | A1: Yes. It is accepted that the work performed was to restore the efficiency of function of the property and did not provide any substantial improvements. Therefore the expenses you incurred are considered expenses for repairs.

Relevant facts and circumstances: You purchased an investment property that was already tenanted. You were informed there was significant mould damage throughout the property. You hired a contractor to inspect the extent of the damage to the property, who reported the need to repair damage to the property. The tenants remained in the property while the repairs were carried out. The property was repaired at your expense.

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