A recent analysis of depreciation schedules prepared by BMT Tax
Depreciation highlighted that 22 per cent of schedules were for primary places
of residence (homes) which the owners turned into rental properties.
This demonstrates a popular trend occurring in the residential market, in which
a significant number of home owners are recognising the additional value of
renting out their home rather than selling. There are many reasons for this trend, and more importantly, home owners who have decided to rent out their home need to be aware how this will transform their tax situation.
As their home turns into an income producing property, owners become eligible to claim depreciation deductions for the structural components of the building as well as the plant and equipment assets contained in the property, subject to qualifying dates.