Neil Owns a Rental Property and During the Year Ended

Multiple Choice

Neil owns a rental property and during the year ended 30 June 2020 he spent $1,500 fixing up holes in the walls after the previous tenants damaged some of the walls in the rental property. Which of the following statements is most correct?

A) The maintenance costs would constitute a repair and so would be deductible under s25-10 ITAA97 and would not satisfy the rules for deductibility under s8-1 ITAA97
B) The maintenance costs would constitute a repair and so would be deductible under the first positive limb of s8-1 ITAA97 as costs incurred in gaining income and would not be deductible under s25-10 ITAA97
C) The repair costs would be capital in nature and so not deductible under either s25-10 or s8-1 ITAA97
D) A repair cost, such as those described, could be deductible under s8-1 but as they are specifically deductible under s25-10 ITAA97, only the specific provision applies