SMSF property depreciation

A self-managed super fund can claim depreciation just like any investor — and inside super, those deductions work even harder.

SMSF property

Depreciation inside your super fund

If your self-managed super fund owns an investment property, it's entitled to the same depreciation deductions as any other owner — and inside the concessionally-taxed super environment, those deductions can be especially valuable.

Whether residential or commercial, an SMSF property should have a tax depreciation schedule so the fund's accountant can claim every dollar and improve the fund's net return.

Common questions

SMSF property depreciation

Can an SMSF claim property depreciation?

Yes. A self-managed super fund that owns an income-producing property can claim depreciation just like any other investor — reducing the fund's taxable income and improving its net return. A depreciation schedule is prepared the same way.

Does depreciation help a limited recourse borrowing arrangement (LRBA)?

It can. Depreciation deductions improve the property's after-tax cash flow, which helps service an LRBA and strengthens the fund's overall position.

Does it apply to commercial SMSF property?

Yes — and commercial property held in an SMSF is unaffected by the 2017 second-hand rules, so both new and existing plant & equipment remain fully claimable.

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