Solar Panels Depreciation in Rented Premises

kings22 (Shareholder) (166 Points)

02 September 2024  

Hello - My brother owns an office building that he rents to IT companies. His only income is rental income which is passive and he runs no active business. Recently one tenant asked to install solar panels on roof top which he is considering. He learnt that solar panels installation can be depreciated over 3 years with first year at 40% and remaining 2 years at 40% and 20% respectively.

He is not able to get depreciation on building today as it is rented premises only. The question is that can he depreciate the solar panels if installed ? 

Thank You!