Depreciation

[investemptress]

hi all, my partner and I bought a joint property 18 months ago and my partner procrastinated in getting the dep schedule done.. now we are separating and have to do last years tax return as well as the current one. it is possible that I may buy this property from him.. I presume heh would still be entitled to the on paper deductions from the period from purchase until settlement of sale to myself. then how does it work? can we still use the same schedule?, just continue on, but in this case I presume I would get 100% of the benefits and his jus cease?
am I correct in thinking this?

 

[JamesGG]

Hiya,

Yes, he would be entitled to his fair share of depreciation for the time that he owns part of the property.

Moving forward, as long as your accountant knows the written down values and rates to be used, I would not see any harm in using the old schedule; you still have a valid starting point to arrive at the claims you are making. Of course, the general rule applies that if you own 100% of the asset, you claim 100% of the deductions.

Cheers

James.