The ATO is reminding taxpayers that have a residential rental property, to take care when making claims for ‘second-hand depreciating assets’ used in their properties.
In most cases, these are items that existed in the taxpayer’s property when they purchased it, or were in their private residence (which they later rented out), such as:
- flooring and window coverings;
- air conditioners, washing machines, alarm systems, spas, pool pumps; and
- items used for both the rental property and the taxpayer’s own home.
Since 1 July 2017, taxpayers generally cannot claim the decline in value of second-hand depreciating assets (some limited exceptions do apply).
However, this rule does not apply to a property that was rented out before this date, or if it is newly built or substantially renovated (conditions apply).
If you have a residential rental property, to help us get your claim right, please answer the following:
- When did you purchase the property?
- Was it a new or existing build?
- Did you live in the property before renting it out?
- When did you start renting the property?
- Was the asset already in the rental property when you bought it?
- Is the property used for business purposes?
Further information about the ATO reminder for rental properties and second hand depreciating assets can be found here.
If you have a rental property and have any questions in relation to claiming second-hand depreciating assets, please contact our team on 03 9708 8801 or email info@rvpartners.com.au for further information.
Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.
The information contained within this document is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Robinson Voss Partners (RV Partners) strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances.
