I took depreciation on my rental property in 2017. I wish to stop taking depreciation in 2018

Discussion in 'Accounting, Tax & Legal' started by hahahaa, 28th Sep, 2018.

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  1. hahahaa

    hahahaa Member

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    9th Sep, 2008
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    Sydney
    I took depreciation on my rental property in 2016 & 2017. I wish to stop taking depreciation in 2018 as my income for 2018 is under $20000. Can I do this?
     
  2. Johnny__

    Johnny__ New Member

    Joined:
    10th Jan, 2019
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    Location:
    Canberra
    It doesn't work like that, in the same way you can't ask for your car to not lose value if you dont drive it for a year, it is still a year older.

    Depreciation is simply the loss of value of an item because it is older, if you dont claim it you lose the entitlement completely I believe.

    I am pretty certain it cannot be saved for CGT either as the way I have read it any item that you CAN (not choose to) claim on tax you cannot use to offset CGT.

    Finally, once a depreciation method has been used you can't switch, if you are using diminishing value, you must continue to use it, however for any new items you have not yet depreciated you can choose prime cost and stick with it for those items only.
     
  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker Business Plus Member

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    What do you mean by 'stop taking'?

    You don't have to claim depreciation but doing so probably will have no effect unless your taxable income becomes negative.