ato logo
Search Suggestion:

Plant previously used only for private purposes

Last updated 12 February 2020

If you use an item of plant for private purposes before you first use it for income-producing purposes-motor vehicles are a common example-you would work out depreciation from the time you first use the plant for private purposes. However, you could claim deductions only for the years you use it to produce assessable income.

If you use the diminishing value method, deductions in the first year of income-producing use would be based on the plant's undeducted cost at that time.

If you use the prime cost method, you can claim deductions based only on the plant's cost.

QC27380