Business Owners · Koste Knowledge Base
Can You Claim Depreciation on Leased Equipment?
Quick Answer
Yes, you can claim depreciation on leased equipment under specific conditions. The key factor is whether the lease is a finance lease, which transfers ownership risks and rewards, allowing depreciation claims under **Division 40 of ITAA 1997**. For operating leases, the lease payments are typically deductible instead.
depreciationleased equipmentfinance leaseoperating leasebusiness tax
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