How Does the Property Type Affect My Depreciation Claims?

Quick Answer

The type of property you invest in—residential, commercial, or industrial—significantly impacts your depreciation claims. Residential properties are subject to stricter rules post-May 2017 changes, affecting Division 40 claims. Commercial properties, however, retain full depreciation benefits on both new and second-hand assets. Understanding these distinctions, as outlined in Division 40 and Division 43 of the ITAA 1997, is crucial for maximising tax benefits.