Another depreciation question

From: F P

I was wondering if some one could answer this for me. Can you claim depreciation on a new townhouse that is being constructed, even though it is not being rented yet.

e.g. construction time is between Dec and August the next year. At the end of financial year you have made progress payments however the building isn't completed yet. Can you claim depreciation in that year, or in the year that it is completed.

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Reply: 1
From: Anonymous

in the commercial arena banks often take security over bank accounts...its called a "mortgage of deposit"

(there is a technical legal issue about Bank A taking security over an account held by bank A but I won't bore you with the details)

Don't give up, you just need to talk to the right banker. Your standard resi loan johnnie will probably not have a clue what you're talking about, but some of the structured/project/big account business bankers will know what you're on about.

ps. there will be extra legal fees for the bank's lawyers to cook it up.
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Reply: 2
From: Dale Gatherum-Goss

Hi Frank

No, you must wait until the IP is available for rent, I am afraid. Good question though and one that I've heard a few times before.

Have fun and good luck

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