depriciation on asset on lease

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

26 June 2011 who will be entitled for depriciation in case of building and other asset - lessor or lessee?

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
Follow

27 June 2011 It depends who has invested in the building. In case a building which is let out and against which rent is received then neither the lessor nor the lessee will get the depreciation.

In case the half completed building is leased out and the same is completed by a businessman then on the investment made by the lessee either he can claim the entire amount as revenue expense or he may treat the same as deferred revenue expenses till the lease period and write it off.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now