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Depreciation Schedule - Picking up where you left off

Discussion in 'Accounting & Tax' started by Frosty123, 9th Jan, 2016.

  1. Frosty123

    Frosty123 Well-Known Member

    Joined:
    12th Nov, 2015
    Posts:
    55
    Location:
    VIC
    Hi all,

    I currently have a property being leased out (has been for 3 years).
    When we first leased it out a quantity surveyor went through and produced our depreciation schedule. In putting together our tax return we used the diminishing value method. If I chose to move into this property in year 4 and make it my PPOR, then in a few years time decided to lease it out again which of the following would apply

    1. The depreciation claimable would pick up where it was left (i.e Year 4)
    2. A new schedule would be created
    3. The years of claimable depreciation whilst it was a PPOR would be lost. The claimable depreciation would be for year 7 or whenever it is I lease it out again (which will be much less than when I terminated the initial lease).

    Thanks

    Frosty
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    18th Jun, 2015
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    9,045
    Location:
    Sydney
    3
     
  3. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

    Joined:
    14th Jun, 2015
    Posts:
    2,125
    Location:
    Sydney & Adelaide
    3 as above. Depreciation is based on the age of the assets being depreciated. Time doesnt stop when you make it a PPOR (at least on this planet), and your assets continue to depreciate but you simply cannot claim any of it.
     
    BMT Tax Depreciation and JenW like this.