The cost associated with the acquisition of capital assets, which provide benefit over their “effective life” may be written off over a period of time as tax deductions and this is essentially known as depreciation.
All ATO specified plant and equipment items and building write-off allowance (where the building qualifies) can be claimed.
The simple answer is no.
Your investment property does not have to be new as both new and old properties will attract some depreciation deductions. A common myth is that older properties will attract no claim.
Yes. Anything in the property that is part of a previous renovation will be estimated by our quantity surveyors and depreciated accordingly. This includes items that are not obvious e.g. new plumbing, water proofing, electrical wiring etc. For capital improvements to qualify for the Division 43 construction write off allowance, they must be completed after the 27th of February 1992.
You can adjust previous tax returns in the event that a property owner has not been claiming or maximising tax depreciation deductions. Generally this is the previous two tax years. Please contact your Accountant or ATO for further information.
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