Second Hand Property · Koste Knowledge Base

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

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.

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