Can I claim assets in a property I turned from home into a rental?
Published 26 June 2026 · Last updated 26 June 2026
Quick Answer
If you turn your home into a rental property, depreciation may be limited for assets that were previously used privately. However, eligible capital works and new assets purchased after the property becomes income-producing may still be relevant.
Turning a former home into a rental creates special issues.
The property may include:
Existing privately used appliances
Existing carpet and blinds
Existing air conditioning
Capital works
Renovations completed while private
New assets added after rental use begins
The second-hand residential plant and equipment rules may restrict annual depreciation on assets previously used privately.
However:
Capital works may still be claimable if eligible.
New assets purchased after rental use may be claimable.
CGT records become important.
Main residence exemption issues may arise.
Market value and cost base records may be needed.
Koste.ai can help organise the property record when a home becomes an investment.
Frequently Asked Questions
Can I claim assets I used privately?
Annual depreciation may be restricted for previously used assets.
Can I claim capital works?
Yes, where eligible.
Does CGT matter?
Yes. Changing a home to a rental can create CGT issues.
Should I record the rental start date?
Yes. It is important for deductions and CGT.
Can Koste.ai help?
Yes. Koste.ai can help create a property tax record from the conversion date.