Can I claim second-hand plant and equipment in a residential rental property?
Quick Answer
In many cases, investors cannot claim annual depreciation on second-hand plant and equipment already in a residential rental property acquired after the 2017 rule change. However, those assets may still be relevant for capital loss or CGT record purposes.
Second-hand plant and equipment includes previously used assets such as:
Existing appliances
Existing carpet
Existing blinds
Existing air conditioning
Existing furniture
Existing hot water systems
Existing ceiling fans
If an investor buys a second-hand residential property with these assets already installed, annual depreciation may be denied under the post-2017 rules.
However, this does not mean the assets are irrelevant.
They may still need to be:
Identified
Valued
Separated from capital works
Recorded for future disposal or capital loss review
Given to the accountant when selling
New assets purchased by the investor after settlement are treated differently and may be claimable.