This month’s QS corner looks at what you can still claim on now that the recent changes to depreciation have been written into legislation.
Here’s an overview of what’s IN and what's OUT:
OUT: If you purchase a second-hand property after the May 9th budget announcement, there is no depreciation deduction available on the plant and equipment items that came with the property.
OUT: If you purchase a new property after the May 9th budget announcement and live in the premises for any duration, you cannot claim depreciation on any of the existing Plant and Equipment items.
IN: If you purchased a property prior to the budget announcement and the property was income-generation during the 2016-2017 financial year, you can continue to claim deductions on the Plant and Equipment.
IN: Regardless of when you purchased the property; if the property was built after 1987, you can still claim the Building Allowance depreciation deductions
IN: Regardless of when you purchased the property or how old it is, if you renovate, you can claim depreciation on all items and structural works associated with the renovation.
IN: If you purchase a brand new property after the budget and it is available for rent from settlement, you can still claim deductions on the Plant and Equipment Items AND on the structure itself.
If you would like to find out if you are eligible to claim depreciation on your investment property, give us a call on 1300 990 612. We’re always happy to check.
Tyron Hyde is the CEO of Washington Brown and is considered one of Australia’s leading experts in property tax depreciation. He is also a registered tax agent. Washington Brown manages construction costs worth over $2 billion and completes 10,000 schedules annually. For a depreciation schedule quote CLICK HERE and follow the 3 simple steps or estimate your depreciation cost.
The Washington Brown Free Depreciation Calculator will give you an estimate of the depreciation deductions you could claim on your investment property
Read more Expert Advice articles by Tyron
Disclaimer: while due care is taken, the viewpoints expressed by contributors do not necessarily reflect the opinions of Your Investment Property.