Depreciation schedule backdating

[#1]

I recently got a Depreciation and Capital Allowances Schedule for an investment property I owned for over 2 years. I was told I cannot amend the tax return for FY16 for the depreciation incurred in that income year. Is there a way to carry forward this "loss" to a later income year? If so, how can I do it? Thanks.

[#2]

@hi11arious

Give the ATO a call.

My understanding is you can amend 2 previous years.

Have you lodged your 2018 return?

Duncan

[#3]

Let me rephrase what you mean: you got your depreciation in 2017-2018 tax year and you wanted to use the depreciation in the report to reduce your taxable income in 2015-2016 tax year. If this is what you mean, my understanding is you cannot do it simply because the depreciation shedule given by your quantity surveyor is based on the assets conditions in this year. In other words, your assets in the property are evaluated based on their value today not two years ago. If this is the case you can only deduct the depreciation to against your rental income in current year.

[#4]

The depreciation schedule should be dated from the time you purchased the property. If you are over the time limit to amend, you should be able to put in an objection to the time limit and have any relevant returns amended. We were able to have returns amended for a client for about seven or eight years by using this method (amendment was also due to claiming depreciation with a schedule).

[#5]

@Annette @hi11arious @Lozza

I would suggest that any Property Investor should use a Tax Accountant.

As this article shows, the tax law regarding Investing is complex.

A Tax Accountant should be advising their clients of the benefits of a Quantity Surveyor (QS) Report.

As Annette, mentions Depreciation is claimed on an annual basis and cannot be carried forward to future years.

Duncan

[#6 · Accepted solution]

Hi @hi11arious,

Welcome to ATO Community!  Thanks for your question.  We can provide you with general information here on our community.

You have two years from the day the notice of assessment is given by the Commissioner to lodge a within time amendment request. If the time limit has passed, you can't request an amendment, but you may be able to lodge an objection. While the time limit for lodging amendments and objections is the same, you can request an extension of time to lodge an objection in some circumstances.

Contact us on 13 28 61 between 8am and 8pm, Monday to Friday, so you can speak to an operator in more detail.

I hope this helps, JodieM