Hi There
Can anyone give me some guidance please regarding depreciation split on leasehold property?
I have currently got the IRD arguing with my acountant over whether on a leasehold property the total purchase price can be depreciated. I think it should be as I do not own the land!
The IRD are saying that due to the valuation I have which mentions on how they valued the property I have a $65k interest in the land and hence IRD are saying this should be treated as the split ($175k paid hence depreciate $110k and treat $65k as if were land). The land alone is worth over $250k!!! and I pay a big lease in turn!
Any guidance on how I can politely explain to the IRD they are wrong? (that is of course if they are wrong ) Thanks for your help in advance...
Can anyone give me some guidance please regarding depreciation split on leasehold property?
I have currently got the IRD arguing with my acountant over whether on a leasehold property the total purchase price can be depreciated. I think it should be as I do not own the land!
The IRD are saying that due to the valuation I have which mentions on how they valued the property I have a $65k interest in the land and hence IRD are saying this should be treated as the split ($175k paid hence depreciate $110k and treat $65k as if were land). The land alone is worth over $250k!!! and I pay a big lease in turn!
Any guidance on how I can politely explain to the IRD they are wrong? (that is of course if they are wrong ) Thanks for your help in advance...
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