Question for the Depreciators. I just bought a 1950's home , hasn't been tenanted yet and it needs updating. I am planning to update the kitchen. I was thinking I could do it after the first tenancy so I can claim the capital works deduction but I pulled this from the Commbank site (and I think it says more or less the same on the ATO website): The Australian Tax Office (ATO) allows you to claim capital works deductions for the construction costs of buildings, extensions, alterations (including kitchen and bathroom renovations) or structural improvements such as a gazebo, carport or retaining wall. The deductions are usually claimed at the rate of 2.5 per cent in the 40 years following construction, as materials such as bricks, concrete and windows are deemed to wear out slowly. Deductions can only be claimed if the property was built after 17 July 1985. So I guess this clearly says if my IP is a 1950's home then I won't be able to claim depreciation on the kitchen if I install a new one. Which means it won't really matter from a depreciation prespective if I install it now or in 6 month's time after the first tenants. Is that right or is there any depreciation benefit to be gained if I was to do it later or will the benefit be more or less immaterial and I should just go ahead with it now?