Thrifty Tax Depreciation are experts in assessing for depreciation. Our favourite type of property is one that would seem to yield little to no depreciation but upon review using the Thrifty Tax estimate calculator, we have gone on to save our clients tens of thousands of dollars over the years of property ownership!
Where a property is second-hand and the previous owner has renovated the property prior to selling, the ATO will allow you to claim depreciation on the building. If the property is one that is purchased prior to the 9th of May 2017, plant and equipment is also claimable, condition that is a rental property since 1st July 2017 to date. If it is purchased after the 9th of May 2017, you will be eligible to claim building depreciation or capital works only. It is wise to note that building depreciation represents 80-90% of construction costs so that you are not losing a whole lot even with the legislation changes. It is worth noting that depreciation claims to plant and equipment on properties that are second-hand but have undergone substantial renovations. See what is a substantial renovations for more information and if applies to you.