Second Hand Property · Koste Knowledge Base

Can I claim depreciation if I bought from a related party?

Published 26 June 2026 · Last updated 26 June 2026

Quick Answer

Buying from a related party can affect depreciation and CGT treatment, especially where plant and equipment, market value, SMSF rules or ownership structures are involved. You should get accountant advice before claiming.

Related-party property transactions require careful review.

Examples:

Buying from a family member
Buying from a related trust
Buying from a company you control
SMSF-related transactions
Transfers after separation
Transfers between entities

Key issues:

Market value
Cost base
Division 40 asset treatment
Second-hand asset restrictions
Division 43 capital works
Stamp duty
SMSF compliance
Related-party lease rules
CGT events

A depreciation schedule may still be useful, but the tax treatment needs accountant review.

Frequently Asked Questions

Can I claim depreciation after buying from family?

Possibly, but the rules need careful review.

Does market value matter?

Yes. Market value may be relevant for tax and transfer purposes.

Can SMSFs buy from related parties?

SMSF rules are strict and require specialist advice.

Should I get a depreciation schedule?

It may help, but accountant advice is required.

Can Koste.ai assist?

Yes. Koste.ai can support property cost and depreciation information.

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