YES AND YES! Tax Depreciation Benefits Can Be Claimed for Old and New Properties!

Tax Depreciation is beneficial for property investors, and a lot of those people (which might include you) do not know what it is about and what they can get from it. As properties get old, they depreciate, and the truth that many are ignorant of is that you can get tax deductions on your property; the tax you pay can be reduced.

One of the common misconceptions in tax depreciation is that it can only be claimed by those who own new properties. That is why those who have older ones just let the information pass them by, the calendars to turn their pages and let other investors claim their own. 

For those of you who are wondering if you can make tax depreciation claims for older properties, the answer is yes! You can claim for both new and old, and below are brief explanations regarding the two:



You can claim depreciation benefits on old properties, but it is restricted up to a certain point only because if it’s definitely too old, the construction costs of the property/building can no longer be put in application. Owners can claim the remaining value of the building until forty years from establishment.The items in your old property are valued less than the brand new items found in a freshly built property. 

For building allowance, old properties are not eligible for depreciation. Any renovation made such as re-roofing, however, can be a valid reason for them to be granted building allowance. The allowance from plant and equipment can be claimed nonetheless.



While many get the wrong idea that only owners of new properties can get taxation benefits, what’s true is that the depreciation claims for them are higher compared to those of the older ones. It is because new properties have newer and high standard installations — today’s rates are also growing higher and higher. Those items have higher initial value because of innovation. As a result, the subtractions are more favorable as they are worth higher. 

There is also a building write-off allowance that is applied with the same concept. At the same time, as construction costs soar, the taking offs you can get also rises.    



Hopefully, you are no longer wondering now whether you can claim for older properties or only for newer ones. Even if you own an older property, you are not deprived of tax depreciation benefits. Although they are limited, the good thing is that benefits still do exist.

Just keep in mind that you have to be carefully and properly informed regarding the dates that determine if the property you have is either old or new to be granted its benefits. If you are to claim your tax depreciation perks, make sure that you note all the important dates so you won’t miss the proper process to be done and most especially, the claiming period. Don’t forget to hire an excellent and expert Quantity Surveyor that’ll work on your Tax Depreciation Schedule which is needed to claim what’s to be claimed for your own good.

Let yourself be well-informed, and get what your properties deserve and are “entitled” of. Don’t hesitate to ask and to research effectively. Regardless if it’s an old or a new property that you own, you are a strong candidate for tax depreciation benefits if you do everything well and responsibly! 



Nicole Ann Pore is a daytime writer for Depreciator, an Australian-based company specializing in and providing Tax Depreciation Schedules for a substantial number of businesses. She writes pieces that help cover people’s need for information regarding taxes, investment and financial planning.