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Tax tips: 10 must-know depreciation terms

You don’t need to be a depreciation expert but understanding some of the key concepts surrounding this complex area of taxation can help your ongoing investment strategy.

Accountant compiling a tax return
Understanding how depreciation works is crucial for a strong return on investment. Photo: Shutterstock

You don’t need to be a depreciation expert but understanding some of the key concepts surrounding this complex area of taxation can help your ongoing investment strategy. 

1. Capital works deduction

This is the depreciation deduction you can claim on the structural component of the building and any fixed assets. Some common examples include walls, doors, roofing, sinks and built-in kitchen cabinetry. 

Capital works deductions can be claimed un…