EV 1052419235820currentnon-binding advice

Rental - deductions and repairs

Non-binding edited private advice. This is an edited version of private advice the ATO gave to a specific taxpayer about their own circumstances. You cannot rely on it — it is not binding and provides no protection for anyone else (see PS LA 2008/4). Use it as a guide to the ATO’s thinking, not as authority.

1

Can you claim a deduction under section 25-10 of the Income Tax Assessment Act 1997 (ITAA 1997) for the restoration work on the driveway, alfresco, and rear paths of your rental property?

2

Yes. This ruling applies for the following period : Year ended 30 June 20YY The scheme commenced on: 1 July 20YY

3

You purchased a 50 % interest in the property at xx xx xx xx on DD MM 20YY. The property was your main residence. You rented the property from DD MM 20YY until DD MM 20YY. Toward the end of the tenancy, you noted the driveway of the property was deteriorating due to weathering and wear and tear. You moved back into the property as your main residence in MM 20YY. In MM 20YY you organised resurfacing of the driveway, alfresco and rear paths. The resurfacing work was undertaken between DD MM and DD YY 20Y. The works undertaken included surface grind, crack stitch repair, deeper cut down on control joints, application of primer, granite flake and sealant. No substrate or drainage issues were identified. No other repairs were undertaken to the property. The total amount of expenditure was $xx,xxx. You incurred the expense for the resurfacing work in MM 20YY.

4

Income Tax Assessment Act 1997 section 25-10