Are you claiming everything you’re entitled to? At-a-glance answers to investment depreciation.

CAPITAL WORKS

Capital works are improvements to the property that are of a structural nature and fixed to the property. For example, kitchen and bathroom renovations, paving and driveways, built-in cupboards, clothes lines and fences are regarded as capital items (but note that not all capital works are included and care should be taken here).

Capital works include the initial cost of building, but not the cost of the land. When buying into any brand new building, you are entitled to claim all or a portion of the construction costs.

DEPRECIATING ASSETS

Equipment and appliances are depreciating assets and include such items as kitchen appliances, carpets and other floor coverings, window finishes, air-conditioning units, alarms and pool equipment.

DEPRECIATION SCHEDULE

When you buy a new property, a list of these costs, known as a depreciation schedule, should be available from the property developer, identifying the cost of every item that can be claimed.

With older properties, there may still be items that you can claim depreciation on. You can commission a quantity surveyor who specialises in preparing depreciation schedules to draw up a schedule for you.