A Trust owns numerous properties, and their main source of income is from the rental of these properties. However a few of these properties were not rented in the 2017 tax year, they underwent repairs and maintenance on damages caused by a severe storm. A
Important:
This answer is based on tax law year ending 28 February 2018.
Answer:
We submit that the following words in section 11(d) are relevant:
“expenditure actually incurred during the year of assessment on repairs of property … in respect of which income is receivable”.
The practice generally prevailing states the following:
The reference to the word “receivable” in section 11(d) has the effect that repairs will be deductible regardless of whether income was received during the relevant year of assessment or not, as long as the property is capable of generating rental income during that year of assessment.