Depreciation & CGT (only 50% share benefit)

Discussion in 'Accounting & Tax' started by adrian, 24th Dec, 2019.

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  1. adrian

    adrian Member

    Joined:
    3rd Nov, 2016
    Posts:
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    Location:
    VIC
    Dear accounting & tax gurus,
    Appreciate your advice on my situation.

    Purchased a IP 2 years ago with my partner (50:50 split). IP is being negatively geared.

    Due to personal circumstances, partner unfortunately has to stop work and likely to have no income for a few years.

    We have since gotten a depreciation schedule done this year which we could backdate to previous years' tax returns. Would it be a good idea to including depreciation in our taxes now given I am the only one who could benefit from it (hence 50% only)? My partner's tax return will still have the other 50% included but without taxable income.

    Come time to sell, I am aware the cost base will have to deduct the depreciation claimed hence would it work out to be worse off for us? Suppose the depreciation claimed will be based on the full 100%?

    Hope my question and understanding makes sense.

    Thanks
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney

    Joined:
    18th Jun, 2015
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    Location:
    Australia wide
    Yes. Your partner may end up with a taxable income in the negative and this could be carried forward to reduce future income including CGT,
     
  3. adrian

    adrian Member

    Joined:
    3rd Nov, 2016
    Posts:
    6
    Location:
    VIC
    Thank you Terry, good to know!
     
    Mike A and Terry_w like this.