Investors often ask why a depreciation schedule includes assets they cannot claim each year.
The reason is that excluded Division 40 assets may still matter.
They may help:
- Identify what was acquired with the property
- Separate plant and equipment from capital works
- Avoid overstating building costs
- Support future capital loss review
- Assist the accountant when selling
- Record asset values before replacement or disposal
Examples:
- Existing oven
- Existing dishwasher
- Existing carpet
- Existing blinds
- Existing air conditioning
- Existing hot water system