Claiming Depreciation

[seano87]

Hi all,

Interested in knowing whether depreciation has to be claimed pro-rata.

For example, If I were to have an IP rented out for the first 6 months of the year, and then moved back in, treating it as my PPOR, could I claim 100% of the on-paper depreciation value, or only 50% of it.

Thanks

Sean

 

[pinkboy]

You can only claim when the property is rented or available for rent. Pro-rata aportioned if you claim it as your PPOR during any year.

pinkboy

 

[seano87]

*sigh*
Fantastic...our accountant claimed 100% of the depreciation even though the property was rented out for only 3 months last financial year.

Thanks

 

[wylie]

*sigh*
Fantastic...our accountant claimed 100% of the depreciation even though the property was rented out for only 3 months last financial year.

Thanks

Ask them to resubmit with the correct information, insist they not charge you for "their" mistake. Then find a new accountant.

We will change accountants this year after many years of finding small and not so small errors. We are sick of it. We had estates to finalise though so stuck with the accountant until all loose ends were tied up. Now it is time to find someone else who takes more care.

I asked a simple question in about April about how much interest to prepay. I worked it out myself and asked (as I've done for several years) that my guesstimate be quickly checked. Instead... a big spreadsheet was done for me and hubby, changes made to distributions from a trust (already distributed) to change drastically what hubby and I each received. That impacted the trust, it impacted my brother. And I was charged $800 for this "advice". I've asked (and received confirmation) that my tax fee this year be lowered to account for their unasked for advice and changes. We'll see how that pans out?

That was the final straw, however, and we are definitely changing accountants this financial year.

 

[Paul@PFI]

*sigh*
Fantastic...our accountant claimed 100% of the depreciation even though the property was rented out for only 3 months last financial year.

Thanks

Actually you claimed an excessive deduction. Led by numpty the accountant. The accountant is liable to correct their mistake.