Depreciation breakdown

Question from eli updated on 18th October 2017:

I am about to rent out my newly renovated family home on a long term basis. I know you can't depreciate the building but can I depreciate the following items - fences, electric gate, painting and decorating, HWC, retaining walls / planters, decks, kitchen cabinetry? Also, how do I value these for depreciation?




Our expert Mark Withers responded:

Fences: Yes, it’s a separate asset not a building.

Electric gate: Yes, assuming its part of the fence.

Painting & decorating: No, these form part of the building.

HWC: Yes, it’s a separate chattel as its not attached to the building by means other than a plumbing fitting and can be removed without damage to the building.

Retaining walls / planters: Yes, retaining walls are not part of the building, they are separately depreciable and there are different rates depending on whether they are wooden or concrete.

Decks: Generally attached to and part of the building so non-depreciable.

Kitchen cabinetry: Attached to the building so non-depreciable.



Mark Withers and his team at Withers Tsang & Co specialise in advising on property related transactions, valuation and restructure services and tax planning.

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