What costs cannot be included in my depreciation schedule?

The cost of land on which the rental property is built, the expenditure of clearing the land prior to construction and permanent earthworks cannot be included in your depreciation schedule.  Therefore any costs that relate to the land or titles, such as subdivision costs and legal fees are also not depreciable.

Landscaping is also not considered depreciable – however the ATO stipulates that human/man made elements such as structures, stairs, fences, reticulation or other material objects are claimable but the actual natural elements such as elevation, gardening etc. are not claimable.  A breakdown of the landscaping expenditure will ensure we get the maximum return on your investment.

We recommend that you speak to your accountant for advice on how to claim for the items that are not considered depreciable.  

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