Hi all,
We have sold our rental to our LAQC, so we have to pay back the depreciation claims to date.
Building =$100,000, depreciated for 5 yrs @ 4% =$18,500 @33% tax rate = $6,105
Chattels $30,000 depreciated for 5 yrs @ 18% =$19,000 @33% tax rate = $6,270
So we have to pay IRD $12,375( to keep it real simple).
Now, for our LAQC, it can claim the depreciations based on the same values;
Building =$100,000 @ 2%
Chattels =$30,000 @ 18%
Are we doing it right? We realise this is not the best way. But it is a “right’ way, right?
How would you do it?
We have sold our rental to our LAQC, so we have to pay back the depreciation claims to date.
Building =$100,000, depreciated for 5 yrs @ 4% =$18,500 @33% tax rate = $6,105
Chattels $30,000 depreciated for 5 yrs @ 18% =$19,000 @33% tax rate = $6,270
So we have to pay IRD $12,375( to keep it real simple).
Now, for our LAQC, it can claim the depreciations based on the same values;
Building =$100,000 @ 2%
Chattels =$30,000 @ 18%
Are we doing it right? We realise this is not the best way. But it is a “right’ way, right?
How would you do it?
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