Tax Depreciation | 5 min read
Can you still claim depreciation after renovating an older rental property?
Older does not always mean no depreciation. If an established rental property has been renovated, extended or substantially improved, the later works may be the part that needs closer review.
The original building age is only one factor
Investors sometimes assume an older dwelling is not worth reviewing because the original construction is too old.
That assumption can be wrong where later capital works, extensions, major refurbishments or eligible assets have been added.
The key question is not just when the home was first built. It is what qualifying works have been completed and when.
Renovations can create fresh information for the schedule
Later kitchens, bathrooms, additional rooms, decks, fencing, flooring, heating, cooling and external works can all change the depreciation review.
The schedule should distinguish original building fabric from later works and any eligible plant and equipment.
This is especially important where the property has changed hands or where the renovation history is not obvious from the purchase documents.
A review can stop useful works being overlooked
If your existing schedule was prepared before the renovation, it may not include the later works.
If you bought the property after someone else renovated it, a review can still help clarify whether the report reflects the current property and your ownership circumstances.
BWK Group can assess whether the older property is worth updating before you order a full report.
Next step
Want to see what a professional report includes?
If you are not ready to request a quote, request sample report formats first. You can review the structure, assumptions and level of detail before deciding which report is right.
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FAQs
Common questions
Is an old rental property too old to claim depreciation?
Not necessarily. Later renovations, additions, capital works and eligible assets may still be relevant, subject to the property details and tax rules.
What if the previous owner renovated the property?
The treatment can depend on purchase timing, property use and available information. A review can help determine whether the existing report is suitable.