Frequently Asked Questions

Can I claim depreciation on a second-hand property?

Of the thousands of reports prepared, Thrifty Tax Depreciation Schedules are often for existing and second-hand properties that will encompass assessing depreciation for second-hand plant and equipment and the building, even if they’re old. The good news is that the ATO will allow property investors to claim thousands of dollars even on second-hand properties.

For residential property investors of second-hand properties, the criteria are that if the property qualifies for division 43 building depreciation, you will be eligible to organise a report for depreciation claims. This is subject to standards of division 43 which allows investors to claim building depreciation for properties built after 15th September 1987 or renovations to the property were completed after 27th February 1992. If you are unsure of the build date, please use our Thrifty Address Check form.

Suppose the property is purchased before 10th May 2017 (also referred to as the date of exchanging contract) and rented since 1st July 2017. In that case, you are eligible for depreciation claims to the plant and equipment referred to as division 40 of the ITAA 97. See Division 40 for more information.

For properties purchased after 9th May 2017 that are not eligible for plant and equipment depreciation or building depreciation, investors may have Thrifty Tax Depreciation check for renovations that may have been completed and unsighted by using the Thrifty Address Check form.

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