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.