If proppoerty is sold under the wrap, who climes depresiation durung the term of the contract -Vendor or Purchaser?
Cheers
The purchaser cannot because they cant claim depreciation on a PPOR and the vendor cannot because this type of transaction eliminates the right to claim depreciation.
Exactly as g7 said.
With a wrap you’ve effectively sold the property (under long terms) so the building and chattels now belong to the purchaser.
I think with a lease option, the vendor may still be able to claim deprecitaion as you haven’t actually sold the property, you’ve only sold an option.
regards,
Rod.
Thanks guys,
It was very usefull.That would certainly ad merit to lease options, as claims of depreciation can ad up over a few proeprties.
[cap]
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