have shifted to aus 10 months ago and rented out the house, trying to work out if to claim depreciation on the house or not, eg well it bite me latter, property was pruchased 8 years ago before the boom so value now is alot more than back then but understand deprication is done on purchase price, not sure if i'm going to shift back to nz to live in it or not
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depreciation when renting own personal home
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Originally posted by confusedkiwi View Postnot sure if i'm going to shift back to nz to live in it or not
Basically, if you move back into property, you may have to pay back any deprecaition claimed. This will recover all years depreciation in 1 go which may put you up a tax bracket (or 2).
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If you don't claim depreciation and don't get 'permission' from IRD to not claim depreciation then IRD will assume depreciation has been claimed and claw back the tax anyway so make sure you either claim depreciation or advise the IRD that you aren't.
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