You are only allowed a deduction for repairs and maintenance where the expenditure is required to maintain an asset in the condition it was initially acquired.
Example:
You get a great deal on purchasing a run-down property with missing weather boards and broken windows. Before you tenant the property, you fix the weather boards and ensure all the windows are in order and compliant. It may seem logical to consider this ‘repairing’ the property which would make the expense claimable. However, because the original price of the property reflected the damage, the damage didn’t occur due to you tenanting the property, and the fact that you are not maintaining the asset in the condition you initially acquired it, you can NOT claim this expense.
If you add something extra to the house – this is likely to be an improvement and claimable for depreciation only.
Please note however, that buildings with a life span of over 50 years are not depreciable for income tax purposes.
