The aim of this webinar is to:
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explain the principles that operate in determining whether expenditure is a deductible repair under s. 25-10 of the ITAA 1997;
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illustrate the application of these principles by way of examples; and
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provide an opportunity for attendees to apply their understanding of the principles to factual scenarios.
By the end of the webinar, participants will be able to:
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explain the requirements of the statutory provision that allows a deduction for repairs;
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distinguish between a repair and an improvement and provide examples to illustrate;
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explain the requisite nexus with the derivation of assessable income;
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explain why initial repairs are considered to be capital expenditure;
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describe some different bases for apportioning expenditure on premises/assets that are used only partly for income producing purposes;
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explain whether repairs carried out to a property before it is put to an income-producing use would be deductible; and
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explain when expenditure is regarded as a depreciating asset or premises.
CPD Points 1.5