How Does a Short-Term Rental Affect My Depreciation Claims?

Quick Answer

Short-term rentals can significantly affect your depreciation claims. Under **Division 40 and Division 43 of ITAA 1997**, you can claim depreciation on plant, equipment, and capital works. However, since the 2017 budget changes, claiming Division 40 depreciation on second-hand assets is restricted for properties acquired after 9 May 2017. It's crucial to maintain accurate records of rental usage versus personal use to optimise your claims.