Of the thousands of reports prepared, Thrifty Tax Depreciation Schedules are often for properties that are existing which will encompass assessing depreciation for second-hand plant and equipment as well as the building, even if they’re old. 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 is that if the property qualifies for division 43 building depreciation, then you will be eligible to organise a report for depreciation claims. This is subject to criteria 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 from 27th February 1992. If you are unsure of the build date, please use our Thrifty Address Check form.
If the property is purchased before the 10th of May 2017 (also referred to as date of exchanging contract) and rented since 1st of July 2017, you are eligible to claims of depreciation 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 of May 2017 who 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.
For more information about the 9th of May 2017 Legislative Changes to depreciation, please see Legislated Budget Changes to tax depreciation.