Depreciation Old Investment Property

Depreciation Calculator

I often get asked, “Can I claim depreciation on my very old investment property?”

The simple answer is yes, but this is where a lot of investors make a mistake.

There are two components to a depreciation schedule Quantity Surveyors prepare on your investment property.

The Building Allowance

The first component involves claiming what’s called the “Building Allowance”.

The Building Allowance relates to the structure of the building. It includes things like brickwork, concrete, windows and even the kitchen sink!

Unfortunately, this part of the claim is date dependent.

If construction of your residential property began after the 16th of September 1987 – yes you can claim the Building Allowance. If construction started prior to this date – I’m sorry – you miss out on the claim.

Plant & Equipment

However, ALL properties are eligible to have the Plant and Equipment component of the building depreciated.

(UPDATE: Deductions for these plant and equipment items may only apply if you bought the property prior to May 9, 2017 – Read about the Budget changes here).

Claiming depreciation on Plant and Equipment relates to the wear and tear of items within your investment property, like carpet, ovens, dishwasher etc.

These items actually wear out more quickly and therefore can be claimed at a higher rate, over a quicker amount of time.

If you need a quote for depreciation on your old property – click here.

Here’s a video in relation to claiming depreciation on an old house.

About Tyron Hyde

Tyron Hyde is a director of quantity surveying firm Washington Brown. He is regarded as one of the industry's leading experts in property tax depreciation, is regularly quoted in the media & asked to speak at conferences. -