Tax deduction - Repairs/maintenance shortly after tenants move in

I recently purchased an investment property and did some repairs/maintenance (over $2000) 3 months after tenants moved in. The damages were not caused by current tenants. Is the repair cost tax deductible in that financial year? Thanks

 

Depends what it was that you did.

 

Repairs done soon after purchase.

You state the damage wasnt done during the income earning period.

I cant see how it would be deductible in full. Capitalise and depreciate.

Paragraphs 4 and 5 of TR 97/23 state that an initial repair refers to a repair that remedies some defect in property or makes good damage to, or deterioration of property being a defect, damage or deterioration:

- existing when the property was acquired from another person; and

- not arising from the operation of the taxpayer who incurs the repair expenditure.

Expenditure incurred on an initial repair is capital expenditure on capital works and therefore not immediately deductible even if some income is earned after acquisition but before the expenditure is incurred. An initial repair is essentially an additional cost of acquiring the property or an improvement in the quality of the property acquired.

 

Probably not as the issue was likely existing when the property was purchased.

 

Thanks for the advice.