I had a client call me the other day asking me can they claim all the unclaimed depreciation on internal fittings, fixtures and building if they purchased an old home as an Investment and the property was used as an residential home.

Well to answer that question, yes and no.

Why?

You can claim the depreciation after you have a quantity surveyor go through the property, he will tell you how much value is left for you to claim against your taxable income.

For example - let's say the owner had carpet laid in his house 6 years ago and it cost him $10,000 to have it installed.

After 6 years the carpet may only have 2 years left and the quantity surveyor will only let you claim the time the carpet has left against your taxable income.

Same as the building, the building we can claim 2.5% over 40 years from new.

This is why we target high capital growth areas, because what goes up is the land value, not the home or building.

Here is article from the Sydney Morning Herald.
http://moneymanager.smh.com.au/property/guides/articles/prop09.html

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