Hi guys, when buying a villa few years old, do we require depreciations already claim from the previous owner? I know by law the owner needs to give us some information regarding deductions already claimed. But I am not sure what is exactly needed from the owner when buying a property only few years old?
Correct me if I'm wrong but I thought depreciation is claim at the start of settlement regardless of any claims made by the previous owner.
Hi, that is exactly I am not sure about. Say if the the aircon, furniture, the light fitting etc etc was $5000 when new, the seller has made depreciation claim using the 10% methods, and after 2 years the value claimed is $500 + $450 = $950. Does that mean we claim on the depreciations on the remaining lot of $4050? If the owner did not bother claim any depreciations, does that mean we can now claim the depreciations on the original purchase price of $5000?
Nope you claim on the $4050 regardless of whether there was a claim or not in the past
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