Hi guys, I'm after some advice here. If a couple has previous not claim any body corporate expenses and depreciation on a building they are entitled to backdate this claim upto 4 yrs right? What happens if during the 4 years they're divorced are both individual entitled to still make a claim? How would it work in this sort of scenario? Thanks
Generally you would go back and amend the previosu four years tax returns, rather than claiming all four years expenses in the current tax return.
The claim depends on who owns the asset. If the divorce meant that one party took over the asset, then they get the deduction.
As Dan42 said, any returns will be amended to claim the additional tax deduction for the body corp fees.
Exactly who claims the deduction depends on who was the legal owner at the time the expense was incurred.
There might be a situation in the year the divorce settled where the deduction is 50/50 for part of the year and then 100% in one persons name of the remainder after the settlement after one party took full ownership – which is how the tax returns should have previously been prepared.
Just ensure the additional tax refunds are more than the accountants fees to make the amendments!
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