Who can claim deductions for the decline in value of a depreciating asset?
This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.
End of attention
Only the holder of a depreciating asset can claim a deduction 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 recognised tax adviser or the Tax Office.
Last modified: 01 Oct 2006QC 27597