Hi I'm in the process of doing a depreciation schedule for my parent but was informed that the apartment they bought had a capped depreciation of 5 years. Now I just wanted to know if such a thing exists? I always assumed that you can claim building cost for upto 40 years if it's built after 1987. Our apartment was constructed in 1995. Any help on this matter would be greatly appreciated.
I have done some research on this question for you
and come up with the following explanationIt seems that Paul Keating introduced as Part of his One Nation Package an incentive for property developers called accelerated depreciation.
This article may shed some light on it.Accelerated Depreciation was introduced on the 26th of Feb 1992 and was removed in 1999 Ralph tax review
See
http://www.propertyoz.com.au/Blog/archive/2009/05/04/54.aspxYour parent's apartment's developer may have opted to use Accelerated Depreciation.
(Probably was a selling incentive I am guessing for potential investor buyers)
Also I discovered in my research that common property area may have a five year depreciation life.Hi duckster,
thanks for the research. I assuming that if the accelerated depreciation was removed in 1999 then we would still be eligible for depreciation(not by much though). Does accelerated depreciation apply for capital works? One would assume that it would be useless to get a depreciation schedule from a quantitative surveyor now right?
This forum has been very helpful. Keep up the good work guys.
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