1. Which of the following transactions would most likely be a deductible repair under s 25-10?

	a.	Repair of damage to property that existed at the time of purchase but was not known to the purchaser.
	b.	Repainting a rental property after purchase but before tenants move in.
	c.	Repainting a rental property in-between tenants vacating and new tenants moving in.
	d.	Mechanical repairs to a vehicle that was not drivable at the time of purchase.

Assuming a taxpayer has only one main residence, they may claim the full main residence exemption where: 

a. The taxpayer buys vacant land with the intention of building her main residence but sells it within three years before a dwelling is built. 

b. The taxpayer having rented out a rental property for 10 years commences using it as a main residence for 2 years and then selling it. 

c. The taxpayer establishes the main residence and then is absent from the dwelling for a continuous period of seven years during which time she uses the dwelling to produce assessable income. 

d. The taxpayer establishes a main residence and then is absent from the dwelling for a continuous period of 7 years during which time she does not use the property to produce assessable income.

Answer rating: 100% (QA)

1 A Repair of damage to property that existed at the time of purchase but was not known to the purch... View the full answer