Renovating · Koste Knowledge Base

What is scrapping in property depreciation?

Published 26 June 2026 · Last updated 26 June 2026

Quick Answer

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.

Frequently Asked Questions

Should I review scrapping before renovation?

Yes. Before renovation is the best time.

Can old assets have value?

Yes, even if they look worn.

Does scrapping apply to commercial property?

Yes, often with significant fit-out assets.

Can I claim after renovation?

It may be possible, but evidence may be harder.

Can Koste.ai help?

Yes. Koste.ai can support pre-renovation review workflows.

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