Scrapping is when removed or demolished assets with remaining value may be written off for tax purposes. It is most useful before renovating, because the old assets can be documented before they are removed.
Scrapping can apply when assets are:
Removed
Demolished
Replaced
Thrown away
Abandoned
No longer used
Examples:
Carpet
Blinds
Appliances
Air conditioning
Kitchen cabinetry
Bathroom fittings
Commercial fit-out
Office partitions
Hospitality equipment
A pre-renovation inspection can capture asset condition and remaining value before demolition.
If the investor waits until after the renovation, evidence may be weaker.