Tax depreciation schedule check
Is a tax depreciation schedule worth it for your property?
Use the guide-only matcher to check whether your investment property may have capital works, renovations, common property or asset details worth reviewing before tax time.
Plain-English answer
The useful question is not only how old the property is. It is what construction, improvements and ownership facts can be supported.
Two different questions
Worth reviewing is not the same as guaranteed deductions
A tax depreciation schedule should help your accountant assess eligible depreciation and capital works. The matcher below is designed to flag whether a proper review is sensible, not to give personal tax advice.
Is it worth getting one?
This is a commercial decision about whether the property has enough building, renovation, strata or asset detail to justify a report.
Does it qualify?
This depends on income-producing use, construction dates, ownership, asset history and the tax rules your accountant applies.
Question 1 of 6
Is the property income-producing?
Depreciation generally matters when the property is used, or genuinely being prepared, to produce assessable rental or business income.
Common confusion
The 2017 plant and equipment rules are not the whole building
Some investors are told they cannot claim depreciation because a property is second-hand or because of the 9 May 2017 plant and equipment rule changes. That may be true for certain previously used Division 40 plant and equipment, but it does not automatically remove building depreciation.
Division 40 plant and equipment
Includes eligible depreciating assets such as certain appliances, floor coverings, blinds and equipment. Second-hand residential rules can restrict some claims.
Division 43 capital works
Relates to qualifying building construction, renovations, extensions, structural improvements and other capital works. These may still be relevant even where second-hand plant is restricted.
Renovation history
Renovations by any owner can change the answer
A property does not need to be brand new to be worth reviewing. Renovations, extensions, additions, common property upgrades and previous-owner improvements can all affect whether a tax depreciation schedule has value.
Kitchen, bathroom, flooring, painting, glazing or internal refurbishments
Extensions, second-storey additions, decks, external works or structural improvements
Apartment and strata common property works that may not be obvious from the unit itself
Commercial fitout, services, hardstand, office areas or tenant-related improvements
Useful internal resources
Keep researching before you order
FAQ
Tax depreciation worth-it questions
Is a tax depreciation schedule worth it for an older property?
It can be. Original construction age matters, but later renovations, extensions, strata common property, commercial fitout and other qualifying capital works can still make a review worthwhile.
Did the 2017 plant and equipment rule changes remove all depreciation claims?
No. The 2017 rule changes can restrict certain second-hand residential Division 40 plant and equipment claims. They do not automatically remove Division 43 capital works deductions for building construction, renovations, extensions or other qualifying works.
Does a pre-1987 property qualify for tax depreciation?
A pre-1987 residential property may still be worth checking where later qualifying works, renovations, structural improvements, common property or commercial components can be identified.
Who confirms the final tax treatment?
Your accountant applies the final tax treatment to your return. A quantity surveyor report helps identify and organise eligible construction costs, capital works and assets for accountant review.
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Want BWK Group to check your property?
Send the property details and we can confirm whether a tax depreciation schedule, update or second opinion is the right next step.