Making the Election: When & How to Opt for Depreciation Adjustments

To use the new depreciation deduction for investment properties, taxpayers must make an irrevocable election in their first eligible tax period. Getting the timing right is essential.

Steps to Elect:

• Determine eligibility — must hold investment property under the realization basis.

• Election must be made in the first tax period beginning on or after 1 January 2025.

• Document the election properly within tax filings and retain evidence for audit.

• Once made, the election applies to all current and future investment properties.

Conclusion

Election is binding and must be made early — miss it, miss the deduction.

Disclaimer : The Content offer general guidance and should not be considered legal, financial, or tax advice. Consult qualified professionals for personalized guidance. While efforts have been made to ensure accuracy, no guarantee is provided for completeness or applicability to individual situations. Users are responsible for interpreting and actions based on this information, at their own risk.    

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