Residential rental properties - Depreciation of items of depreciable property

This interpretation statement considers the depreciation of items in the context of a residential rental property. It sets out a three-step test that the Commissioner will apply to determine whether an item can be depreciated separately or whether it is properly depreciated as part of the building. It also includes an appendix with a number of common items (such as plumbing, electrical wiring, hot water cylinders, doors, and cupboards) and states the Commissioner's view on whether these are separately depreciable items or part of the building.

See QB 20/01: Can owners of existing residential rental properties claim deductions for costs incurred to meet Healthy Homes standards? issued 17 June 2020.