Are you entitled to claim a repair deduction for the cost of replacing the roof of your rental property?
Yes. Yourexpenses meet the requirements in Taxation Ruling TR 97/23 Income tax: deductions for repairs and are deductible. Further information about repairs can be found by searching 'QC 103907' on ato.gov.au This ruling applies for the following period Year ended 30 June 20xx The scheme commenced on: 1 July 20xx
You acquired a property after 20 September 1985 (The property). The property has always been used by you to derive assessable income. Prior to acquiring the property, you obtained a pre purchase building inspection report. The report did not indicate that there were any existing issues with the roof. The roof has deteriorated over time to the extent that if immediate repairs were not undertaken the property would be dangerous to live in and as a result uninhabitable. The replacement of roof was completed in xx 20xx. The existing roof was made of a material before it was replaced with the same material. The property was still able to be used to produce assessable income whilst the replacement of the roof was undertaken. Relevant legislative provision Income Tax Assessment Act 1997 section 25-10