Second Hand Property · Koste Knowledge Base

Can I claim depreciation if I inherited an investment property?

Published 26 June 2026 · Last updated 26 June 2026

Quick Answer

You may be able to claim depreciation on an inherited investment property, but the treatment depends on the property history, asset use, capital works, ownership date and estate records. Accountant advice is essential.

Inherited property can be complex.

Key issues include:

Was the property a main residence?
Was it rented before inheritance?
When was it acquired by the deceased?
What renovations were completed?
Are construction costs known?
Are depreciation schedules available?
What plant and equipment existed?
Was there private use?
What is the cost base position?

Division 43 capital works may still be relevant if eligible. Division 40 plant and equipment may be restricted depending on the circumstances.

Koste.ai can help gather property information, identify missing records and support a depreciation or CGT cost base review.

Frequently Asked Questions

Can inherited property have capital works deductions?

It may, depending on the building and improvement history.

Can I claim existing plant and equipment?

The treatment depends on the rules and history of the assets.

Do I need estate records?

Yes. Estate and prior ownership records can be important.

Does CGT matter?

Yes. Inherited property can have CGT implications.

Can Koste.ai help organise the records?

Yes. Koste.ai can help gather information for 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