Published 26 June 2026 · Last updated 26 June 2026
Quick Answer
Even if you cannot claim annual depreciation on some second-hand residential assets, their values may still be useful. They can help separate plant from building costs and may support capital loss or CGT records later.
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
This is particularly useful for second-hand properties acquired after the 2017 rule change.
Examples:
Existing oven
Existing dishwasher
Existing carpet
Existing blinds
Existing air conditioning
Existing hot water system
Koste.ai can help create a better property record from day one.
Frequently Asked Questions
Are excluded assets still useful?
Yes. They may support future capital loss or cost base review.
Can I claim them annually?
Not if the rules deny annual depreciation.
Should they stay in my report?
Yes, where relevant, they provide an important record.
Does my accountant need this?
The accountant may need it when reviewing CGT or disposal treatment.
Can Koste.ai store this information?
Yes. Koste.ai should keep the asset record linked to the property.