Private ruling: Rental deductions
Date of advice: 22 October 2019
Published: January 2020
Ruling period: Year ended 30 June 2019 | Year ending 30 June 2020
Date scheme commenced: 1 July 2018

Ruling: Q1: Are you entitled to a deduction for the cost of underpinning a corner of your rental property? | A1: Yes. Based on the facts you have provided, we can conclude that costs incurred in relation to the underpinning of your rental property will restore the property to its original condition. This does not materially alter the character or functionality of the rental property. Accordingly you are eligible to claim a deduction in relation to the repair under section 25-10 of the Income Tax Assessment Act 1997. Further information regarding "Income tax: deductions for repairs" is addressed in ATO Taxation Ruling TR 97/23

Relevant facts and circumstances: You own an investment property which required works to underpin one corner of the dwelling. You have rented out the property for a number of years. The property was inspected and the issue identified during the 2018-19 income year. The property continues to be rented.

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