Depreciation Myths – Part 2: “My Property is Too Old to Depreciate!”

Following on from Depreciation Myths – Part 1: Tax Depreciation isn’t Worth it Due to Capital Gains Tax, the second myth I would like to squash is the far too common question that I get asked – “But isn’t my property too old to claim depreciation?”.  

“My property is too old to Depreciate!”

Going back to basics there are two types of allowances available to property investors:

• Division 43 Capital Allowances (e.g. the building structure), and;
• Division 40 Plant & Equipment (e.g. carpets, blinds, appliances etc…).

Division 43 allowances are available to Property Investors whose investment property was built and/or renovated after 15 September 1987. Depreciation on plant and equipment is available to all Property Investors (except for existing residential properties purchased post 09/05/2017) – there is no time limit for these assets.

So, no matter the age of a property, all investment properties qualify for depreciation. If your property was built prior to 15 September 1987 we inspect your property and estimate your depreciation entitlements based on the renovations, extensions and improvements undertaken to the property. No matter whether the works were completed by yourself or by previous owners, you are entitled to the depreciation of these works – this is where our expertise lies.

Plant and equipment is commonly worth up to $20,000 in total deductions over the full life of the assets.

If you are concerned about whether it is worth getting a depreciation schedule completed due to the age of the building please contact us. From asking a few basic questions we will be able to determine whether getting a depreciation schedule done is worthwhile and will outweigh our fee. We guarantee the value of our service.

For more information please don’t hesitate to email me on [email protected], visit gqs.com.au or call 1300 290 235 to speak to a tax specialist today!