Claiming Tax Depreciation – Koste Chartered Quantity Surveyors

1. How Do I Claim Tax Depreciation on My Investment Property?

Short Answer:

To claim tax depreciation, you need a professionally prepared tax depreciation schedule, which is submitted to your accountant to apply deductions on your tax return.

Steps to Claim Depreciation:

1️⃣ Order a Koste Tax Depreciation Report – Our reports identify all eligible deductions.
2️⃣ Submit the Report to Your Accountant – They apply deductions to reduce your taxable income.
3️⃣ Claim Depreciation Annually – Our reports cover 40 years of deductions for continued tax savings.

📌 Order Your Report Now: Start Here

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2. What Can I Claim Under Tax Depreciation?

Short Answer:

You can claim deductions on both the building structure (Division 43) and plant & equipment assets (Division 40).

Breakdown of Eligible Claims:

✔ Division 40 (Plant & Equipment): Depreciable assets like air conditioning, carpets, kitchen appliances, and blinds.
✔ Division 43 (Capital Works): Structural components like walls, roofs, and flooring (for properties built after 16 Sept 1987).
✔ Renovations & Fit-Outs: Even if you didn’t complete the work, previous renovations may qualify for deductions.

📌 Find Out What You Can Claim: Get a Free Estimate

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3. Can I Claim Tax Depreciation on a Second-Hand Property?

Short Answer:

Yes, but only on Division 43 (Capital Works). Under 2017 tax law changes, Division 40 (Plant & Equipment) cannot be claimed for second-hand residential properties unless the investor purchased the assets brand new.

Who Can Still Claim Full Depreciation?

✅ New Property Investors – Both Division 40 & Division 43 apply.
✅ Commercial Property Owners & Tenants – No restrictions on claiming depreciation.
✅ Investors Who Complete Renovations – New assets installed qualify for depreciation.

📌 Need a Report for a Second-Hand Property? Order Here

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4. Can Business Owners Claim Tax Depreciation on Their Commercial Property?

Short Answer:

Yes, business owners can claim depreciation on both the building and fit-out costs, whether they own or lease the property.

What Business Owners Can Claim:

✔ Building Structure (Division 43): 2.5% per year on eligible capital works.
✔ Business Assets (Division 40): Includes shelving, IT equipment, furniture, and fixtures.
✔ Leasehold Improvements: If you renovate or fit out a leased space, you can claim depreciation.

📌 Get a Commercial Depreciation Report: Request a Quote

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5. Can I Claim Depreciation on a Property That I Used to Live In?

Short Answer:

Yes, but only from the time you rented it out.

Key Considerations:

🔹 If you move into a rental property, you lose eligibility for Division 40 depreciation.
🔹 Capital Works (Division 43) can still be claimed on renovations and construction costs.
🔹 You may also have Capital Gains Tax (CGT) implications when selling.

📌 Talk to an Expert Before Making a Move: Book a Consultation

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6. Can I Backdate Tax Depreciation If I Haven’t Claimed It Before?

Short Answer:

Yes! The ATO allows you to amend previous tax returns (up to two years for individuals, four years for companies) to claim missed depreciation.

How to Backdate Depreciation:

1️⃣ Order a Koste Tax Depreciation Schedule – It includes retrospective claims.
2️⃣ Provide the Report to Your Accountant – They can adjust prior-year tax returns.
3️⃣ Receive a Potential Tax Refund – Claim deductions you previously missed.

📌 Find Out If You Can Backdate Depreciation: Talk to Us

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7. How Does Koste Ensure I Claim the Maximum Depreciation?

Short Answer:

We use Capal, Australia’s most advanced tax depreciation software, to ensure every deduction is accurate, maximised, and ATO-compliant.

Why Koste’s Reports Deliver More Deductions:

✅ Real Construction Cost Data – We don’t rely on outdated estimates like some providers.
✅ Exclusive Technology (Capal) – AI-driven analysis ensures nothing is missed.
✅ Prepared by Chartered Quantity Surveyors (AIQS & RICS) – Not just tax agents.
✅ Audit-Ready Reports – Fully compliant with ATO guidelines.

📌 Get a Report That Finds Hidden Deductions: Order Now