Only a holder of a depreciating asset may deduct an amount for its decline in value.
In most cases, the legal owner of a depreciating asset will be its holder.
There may be more than one holder of a depreciating asset-for example, joint legal owners of a depreciating asset are all holders of that asset. Each person's interest in the asset is treated as a depreciating asset. Each person works out their deduction for decline in value based on their interest in the asset-for example, at the cost of the interest to them, not the cost of the asset itself-and according to their use of the asset.
In certain circumstances, the holder is not the legal owner. Some of these cases are discussed below.
If you are not sure whether you are the holder of a depreciating asset, contact your professional tax adviser or the ATO.