My property has been refurbished can I depreciate these costs? | Koste Chartered Quantity Surveyors

My property has been refurbished can I depreciate these costs?

Most second-hand properties will have undergone some sort of renovation or asset replacement since they were built and will benefit from depreciation deductions on the cost of these works. For residential properties. Building improvements need to have been completed after September 15, 1987, and for structural improvements after February 27, 1992, this will account for up to 85% of the total depreciation deductions, with the remaining 15% attributed to plant and equipment. It does not matter whether you completed the work yourself or for the previous owner; you will be eligible to claim these deductions.

Plant and equipment deductions, as mentioned, account for around 15% of depreciation deductions. This deduction is depreciated in full if new; however, if second-hand and purchased after the May 9, 2017 ATO Budget changes, you will not be able to claim the deduction. A depreciation specialist is always on hand to provide you with complementary advice in this area to ensure you maximise deductions. Remember, if you renovate or replace assets, the chances are you will also be eligible to claim write-off deductions on the remaining written-down value of an asset.

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