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RSDH(Initiate)Initiate
4 Mar 2026

When a person sell a rental property , and as I understand the rule is to reduce the cost base of the asset by the total value of depreciation claimed under Division 40 & 43.


In the example provided at QC 66039 - Over the 7 years of ownership of the property, the owners claimed $5,000 in decline in value deductions and $35,000 in capital works deductions. 


Does $5,000 in decline in value deductions also include deductions claimed under Low Value Pooling method?

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186 views
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Taxduck(Taxicorn)Taxicorn
4 Mar 2026

Maybe not in this example as there was no mention of low value pooling being used. Low value pooling is an alternative method of claiming decline in value deductions for low value depreciating assets.


Division 40 and 43 aren't mentioned when reducing the cost base for decline in value. It is capital works deductions and decline in value deductions. There are a number of ways of working out decline in value. See below

Working out decline in value | Australian Taxation Office


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How to calculate reduced cost base for CGT? | ATO Community