Owning Property · Koste Knowledge Base

What deductions am I missing?

Published 25 June 2026 · Last updated 26 June 2026

Quick Answer

Many property investors miss deductions because they only think about loan interest, rates and property management fees. Depreciation, capital works, previous owner renovations, common property and scrapped assets are often overlooked.

Investment property deductions can be broader than many investors realise.

Common deductions investors know about include:

Loan interest
Council rates
Water rates
Property management fees
Repairs and maintenance
Insurance
Accounting fees

But many investors miss property depreciation-related deductions, including:

Division 43 capital works
Renovations by previous owners
New assets installed after purchase
Common property in apartments
Commercial fit-out assets
Plant and equipment in business premises
Scrapping deductions from removed assets
Capital works on extensions or improvements
Depreciation on furniture in eligible properties
Replacement assets
Eligible construction costs not shown in the purchase contract

The issue is that many of these deductions are not obvious from bank statements or agent summaries.

A tax depreciation schedule can help identify deductions hidden inside the building and assets.

Koste.ai can guide investors through the key questions to determine whether they may be missing deductions and whether a formal report is required.

Frequently Asked Questions

Can I claim depreciation on common property in my apartment building?

Yes. Your proportionate share of common property such as lifts, lobbies, gardens, pools and common services may attract depreciation deductions.

Can I claim depreciation on renovations made by the previous owner?

Yes. Eligible capital works carried out by a previous owner may still attract Division 43 deductions, even if you did not pay for those renovations.

What if my property was built before 1987?

Properties built before 18 July 1985 generally do not qualify for Division 43 capital works deductions. However, renovations completed after that date may still be claimable.

Do I need a depreciation schedule to claim deductions?

A quantity surveyor depreciation schedule is not legally required, but it provides the supporting evidence needed to identify and correctly claim eligible deductions.

Can I claim depreciation on furnished rental properties?

Yes. Eligible furniture and furnishings used in income-producing properties may attract depreciation deductions as plant and equipment, subject to ownership and use rules.

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Written by Koste Team · Koste Chartered Quantity Surveyors · AIQS Member · RICS Member · TPB Registered · 1300 669 400 · info@koste.ai