- Renovation Property Depreciation
Can I Claim Depreciation on My Renovated Property?
The short answer is Yes. Investors can claim renovation property depreciation, even if they didn’t complete the works themselves.
That’s right, if you’ve purchased a property that a previous owner has renovated, you are entitled to claim the depreciation deductions.
Generally, the renovations have to have been completed after 1987, though the date varies slightly according to the type of works.
What Am I Eligible to Claim?
If you have renovated the property yourself, and did not live in it once complete, then you are eligible to claim both the Building Allowance deductions, as well as the Plant & Equipment deductions.
However, if you have purchased a recently renovated property, you are likely only eligible to claim on the Building Allowance portion.
This is due to the 2017 Federal Budget changes to depreciation, in which the ATO limited deductions on ‘previously used’ plant and equipment.
The good news is, the Building Allowance portion often makes up 80-90% of the total renovation cost.
To learn more about Renovation Property Depreciation, have a read through the articles below.
Renovation Property Depreciation Articles:
Depreciation and Natural Disasters: Everything You Need To Know A natural disaster could have a devastating effect on your investment property in Australia. You may need to get a new depreciation schedule to account for any repairs you make. Here’s what you need to know. You cannot underestimate the effects natural disasters can have on […]
You Can Claim Tax Deductions in Australia for Previous Renovations When considering tax deductions in Australia, most investors only take their own renovations into account. It does make sense. After all, why should you be eligible to claim deductions on your investment property in Australia if you didn’t pay for the work? Perhaps surprisingly, you […]
9 Ways to Cut Tax Bills Through Depreciation Firstly, what is property depreciation? Well, just like you claim the wear and tear of your car against your taxable income or the wear and tear of the desk in your office, you can claim the wear and tear of your property against your taxable income. But […]
There are many myths floating around when it comes to tax depreciation. Especially regarding what property investors are entitled to claim. Below are some of the most common myths I have heard during my time as a qualified Quantity Surveyor. NOTE: Information below regarding plant and equipment items may only apply to properties purchased prior to May […]
Whenever I am delivering a presentation or conducting a webinar, I always make sure to leave time for a 30 min Q&A session at the end. In most Q&A sessions, the topic that by-far receives the most queries has to do with the concept of “scrapping” in relation to property tax depreciation. Claiming the Residual […]
While a property investor’s major goal is likely to be capital growth, they’ll also be looking for solid rental yields to help them hold onto their asset. To achieve the best possible rental return, you’ll need to maximise the appeal of your property to potential tenants. But what do tenants want? Generally they’ll want a […]