Loading
This thread is archived and the information may not be up-to-date. You can't reply to this thread.
johnny1234(Initiate)Initiate
2 Apr 2024

Hi

 

I have purchased a rental property built in 2011 in 2021.

So, it is not a new build and I'm not the first owner.

I am keen to know what type of depreciation allowance I might be eligible to claim on it.

I understand there are:

- capital works depreciation

- plant and machinery

 

I understand I cannot claim any plant and machinery depreciation for the original fittings that I did not install under new legislation from 2007. Is that correct?

 

However, can I still claim capital works depreciation for the original property (which is under 40 years) if I get a depreciation schedule from a quantity surveyor? Thanks

 

Kuru

317 views
1 replies
317 views
1 replies

Most helpful response

Most helpful reply

Taxduck(Taxicorn)Taxicorn
2 Apr 2024

Yes, you can claim capital works (construction costs). You can contact a quantity surveyor (or similar qualified person) to undertake this report. Fee is tax deductible.

https://www.ato.gov.au/individuals-and-families/investments-and-assets/residential-rental-properties/rental-expenses-to-claim/rental-expenses-you-claim-over-several-years/work-out-your-capital-works-deductions

This is the rule for depreciating assets. (as taken from ATO website)

"You can't claim a deduction for the decline in value for assets in an existing residential rental property if you entered into a contract to purchase that property on or after 7:30 pm (AEST) on 9 May 2017."

All replies

Most helpful reply

Taxduck(Taxicorn)Taxicorn
2 Apr 2024

Yes, you can claim capital works (construction costs). You can contact a quantity surveyor (or similar qualified person) to undertake this report. Fee is tax deductible.

https://www.ato.gov.au/individuals-and-families/investments-and-assets/residential-rental-properties/rental-expenses-to-claim/rental-expenses-you-claim-over-several-years/work-out-your-capital-works-deductions

This is the rule for depreciating assets. (as taken from ATO website)

"You can't claim a deduction for the decline in value for assets in an existing residential rental property if you entered into a contract to purchase that property on or after 7:30 pm (AEST) on 9 May 2017."

Featured articles

Finding your TFN

6 Feb 2026 · 4 min read time

Linking the ATO to your myGov account

16 June 2026 · 2 min read time

Spouse details and your tax return

15 Apr 2026 · 3 min read time

Top liked users

  1. Bruce4Tax

    (Taxicorn)

    3114 likes

  2. Taxduck

    (Taxicorn)

    2132 likes

  3. PayrollDeanne

    (Taxicorn)

    862 likes

  4. YellowPotato

    (Taxicorn)

    559 likes

  5. knaresbro

    (Devotee)

    374 likes

Top contributors

  1. Bruce4Tax

    (Taxicorn)

    9671contributions

  2. Taxduck

    (Taxicorn)

    4848contributions

  3. PayrollDeanne

    (Taxicorn)

    2075contributions

  4. YellowPotato

    (Taxicorn)

    1404contributions

  5. YEP

    (Devotee)

    836contributions

Loading
Depreciation allowance claimable for rental property built in 2011 that was built in 2021 | ATO Community