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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