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Renovating · Koste Knowledge Base

Can I claim depreciation on a renovated property?

Quick Answer

Yes, renovated properties may have depreciation deductions, especially for capital works and new assets. The claim depends on who completed the renovation, when it was done and whether the property is income-producing.

Renovated properties can be valuable from a depreciation perspective.

Potential claim areas:

  • Capital works from renovations
  • New appliances
  • New flooring
  • New air conditioning
  • New blinds
  • Bathroom upgrades
  • Kitchen works
  • Extensions
  • Outdoor structures
  • Scrapping of removed assets
  • Common property works
If the renovation was completed by a previous owner, capital works may still be claimable. If the investor completed the renovation, new assets and capital works should be added to the depreciation schedule.

For residential property, second-hand plant rules still need to be considered.

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