Buying property from developer tenanted, depreciating P&E

A question on the recent depreciation changes
(Housing Tax Integrity – Disallowing Travel Deductions and Limiting Depreciation Deductions)

If a developer is selling a tenanted apartment, but still treats the P&E as trading stock and doesn't claim depreciation. Would the buyer be able to claim the P&E depreciation?

Thanks in advanced.

 

What is p & e? I don't think depreciation could be claimed by a buyer as not new.

 

plant and equipment, everying thing not considered the building.

I see you posted in the other thread, wasn't sure if that wasn't going to get notices as a bit outdated.

Here is my response;

Yes, the apartment is not new, but it is slightly different if a developer is still considering the property trading stock and not claiming any of the benefits an investor would, like depreciation.

If you can't claim depreciation due to being trading stock, this suggests it is still considered new for tax purposes, even though physically lived in.

There was another example someone posted about depreciation of secondhand goods purchased from say factory seconds outlet. Because the goods is trading stock (to the retailer), you can depreciate the asset, even though the good isn't new.

 

You will have to look at the specific legislation or seek legal advice on this. I haven't read the legislation so don't know.