Can co-owners of a rental property each use different depreciation methods for an acquired asset | ATO Community

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(Initiate)Initiate

9 Oct 2023

Two taxpayers own a rental property as tenants in common. Can they use different depreciation methods for an asset they acquired for the rental property? For example, they purchased a washing machine for the rental property - can one co-owner use the prime cost method and the other use the diminishing value method for calculating the depreciation?

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(Taxicorn)Taxicorn

10 Oct 2023

If cost was under $ 2000, then each should be claiming under low value pool.

Otherwise, claim as WDV on rental schedule.

PCM is not recommended.

https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/general-depreciation-rules---capital-allowances/prime-cost-(straight-line)-and-diminishing-value-methods/

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Most helpful reply

(Taxicorn)Taxicorn

10 Oct 2023

If cost was under $ 2000, then each should be claiming under low value pool.

Otherwise, claim as WDV on rental schedule.

PCM is not recommended.

https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/general-depreciation-rules---capital-allowances/prime-cost-(straight-line)-and-diminishing-value-methods/

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Can co-owners of a rental property each use different depreciation methods for an acquired asset | ATO Community