Depreciation — change of use event

Draft Question We’ve Been Asked PUB00343: Depreciation — change of use event has been released for consultation.

From the summary:

This item considers whether depreciation recovery income may arise for a business that becomes a charity and begins deriving exempt income. The item concludes that a business that becomes a charity will have a change of use of its depreciable property, as that property is no longer available for use in deriving assessable income but will be used for deriving exempt income. As depreciation deductions will be disallowed, s EE 47(2) applies.

Submissions are due by 20 March 2019.