Depreciation Question

From: Ian Parham


'Evening All

Did not wish to corrupt the thread down the page on this topic, so posted anew here.

My question is in relation to the purchase of an IP (my brother) after it has already been an IP for someone else (me) who has claimed full depreciation on chattels for 4 years.

Can the new owner/investor claim the full depreciable value of said chattels (new QS report) all over again, or only the remaining 12 months value of say the original 5 yr schedule from the previous owner?

Thanks in advance!

Kind regards...Ian
 
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Reply: 1
From: Paul Zagoridis


My understanding is yes your brother can and should get a new QS report.

He has bought a new asset (to him). It depreciates and lowers his base-cost.

Your accumulated depreciation has reduced your base cost and you have to deal with the tax consequences of that.

You two aren't related from a depreciation perspective.

PaulZag
Dreamspinner
WealthEsteem :: Psychology of the Deal
http://www.wealthesteem.org/
 
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