Repairs to IP owned by SMSF

That ruling you talk about is where borrowing is used by your smsf to purchase a property (via a limited recourse borrowing arrangement).  The ruling covers whether your smsf can undertake further borrowing for "repairs" where the property is subject to an existing borrowing arrangement. If the repairs are minor, I would expect the smsf can use cash for the repairs and would not normally need to undertake further borrowing to fund the repairs. I think your question is whether or not the repairs are deductible? In that regard, repairs are normally only deductible where incurred via wear and tear due to the physical renting of the property (eg wear and tear by the tenant). If there defects existing at time of purchase, the costs of fixing these will normally be regarded by the ato as "initial repairs" and hence will not be deductible. Initial repairs may qualify for a capital allowance (depreciation) claim under Division 43 (or possibly Division 40) depending on there character. 

Does anyone know if an extension would be ok?

Hi Amy… It could be ok but certainly the SMSF cannot use further borrowings to make Improvements to any property subject to a limited recourse borrowing arrangement (ie a Smsf property subject to a borrowing). also, you need to ensure that the improvement does not change the character or nature of the property… Eg you cannot subdivide or change from residential to commercial etc.