- Ol PaintingMember@ol-paintingJoin Date: 2003Post Count: 123
If proppoerty is sold under the wrap, who climes depresiation durung the term of the contract -Vendor or Purchaser?
CheersFast LaneMember@fast-laneJoin Date: 2004Post Count: 527
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.RodCMember@rodcJoin Date: 2002Post Count: 335
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.
Rod.Ol PaintingMember@ol-paintingJoin Date: 2003Post Count: 123
It was very usefull.