Depreciation Schedule - PPOR to IP

I'm planning to turn my PPOR into an IP in February while overseas. Current plan is to sell in 6 years, so looking to maximise the depreciation available and no CGT. I have a draft depreciation schedule.

1. Is it possible to claim 5/12's (Feb-Jun) of the Year 1 depreciation in FY18/19, then in FY19/20 use the balance of Year 1 depreciation plus 5/12's of the Year 2 amount?

2. If no to the above, then I can only claim 5/12's of Year 1 for FY18/19, and use Year 2 for FY19/20?

3. Would it be beneficial not to claim depreciation in FY18/19 and then use the full Year 1 amount in FY19/20, especially if using the diminishing cost method for 5 years?

4. Does it matter when I get the depreciation schedule done? If I have it completed this year while it is still my PPOR I presume I can still claim it as a deduction, and my choice when to actually start the depreciation?

 

are you aware you can't claim 2nd hand items any more so it is just building depreciation mostly

 

But there's been no change of ownership here? My PPOR became an IP last year and I've claimed for things I put in when living there, e.g. 1/12 for oven, though as it was installed four years before the place becoming an IP I can obviously only claim for the remaining eight years.

 

After 10 May 2017 only NEW installed assets can commence depreciation. The changes are intended to phase out Div 40 deductions for most properties.

Ownership change is one way. A property which didnt earn rent in the period between 10 May 2017 and present cannot commence depreciation either unless its commercial.

If you do have a old QS report its now invalid. If you need a new one the QS would explain the CGT alternative - A CGT loss for the value of depreciation you cant claim

Your prior tax return needs to be amended. Unless you earned rents in the period between 17 May 2017 and 30 June 2017 and then continually in 2018 you are affected. And your rate may be incorrect based on your self assessed calcs. A oven has an effective life of 12 years. Depreciation rate is 16.66% pa.not 1/12th (8.33%) unless you chose the prime cost method.

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