There are, in fact, two questions that are relevant to the issue of whether construction and maintenance costs can be deducted against the landlord’s rental profits:

Are the costs deductible as an income expense?

If so, when can these costs be deducted?

The first question is determined by reference to tax law and principles. The general rule is that the work must constitute a repair in order that the expenditure can be deducted (see 9.4).

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