Depreciation on chattels in IP (converted from owner occupied)

Discussion in 'Accounting & Tax' started by James Baker, 11th Jun, 2019.

Join Australia's most dynamic and respected property investment community
Tags:
  1. James Baker

    James Baker Well-Known Member

    Joined:
    21st Mar, 2017
    Posts:
    280
    Location:
    Melbourne
    Hi there

    My friend bought a property in Feb 18 and lived in it for 1 year for first home buyers benefit
    While living in the property, he bought a new gas hob and curtains In February 19.
    In April 19, he moved out and rented it out to convert to investment property.

    Can he claim depreciation on those 2 items also as they were bought before he moved out and converted it to an "investment" property?

    Cheers
     
    James Baker, 11th Jun, 2019
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    41,932
    Location:
    Australia wide
    prob not
     
    Terry_w, 11th Jun, 2019
    #2
    Ross Forrester likes this.
  3. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    23,504
    Location:
    Sydney
    No. Not at all. They are used assets at the time first used in the IP. Since 9th May 2017 only new assets are eligible for Div 40
     
    Paul@PAS, 11th Jun, 2019
    #3
    BMT Tax Depreciation likes this.