Depreciation Rates

Depreciation rates and effective lives for all types of investment properties are listed in the table below.

A 2.5% rate means the properties construction cost can be depreciated for 40 years from the date of construction. A 4% rate means that the property can be depreciated for 25 years from the date of construction.

Residential
To be eligible for depreciation tax claims, construction of a residential investment property must have completed on or after 16 September, 1987. The depreciable component (effective life) expires 40 years from the date of construction - 2027 if built in late 1987.

No claim available
Properties acquired after 2010 that were built between 1985 and 1987 have no depreciation claim available.  The depreciable component expired 25 years after they were built as their rate was 4% not 2.5%.  (Note the exact dates in the table below).

Renovation
In most cases a depreciation schedule for buildings constructed prior to the dates specified below becomes financially attractive if significant renovation, additions or alterations occurred after the construction date.  For example a renovation costing $100,000 completed in 2015 attracts a 2.5% claim or $2,500/year for 40 years up to 2055.