What is Property Depreciation? And how does it work?
Just like you can claim depreciation on a car that you use for business, you can also claim the wear and tear of an investment property to reduce your taxable income. There are two types of allowances available. First is depreciation on Plant and Equipment. That’s items within the building like ovens, dishwashers, carpets, and blinds.
And then there’s the Building Allowance which refers to construction cost of the building itself, like concrete and brickwork. The amount that you claim reduces your taxable income for that year.