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  1. #1

    Default Depreciation obligations when moving into rental or selling it

    Hi Guys

    We're currently staying with our folks and due to an expanding family; we're thinking of moving into one of our rentals or selling it and then purchasing in a nice area.

    My questions is that for the past few years we have been claiming depreciation on the property since it was a rental. If we are to move into this property, what do we need to be aware of in terms of depreciation? obviously we cant claim it moving forward but do we have to pay back what we've claimed already?

    Thanks

  2. #2
    Join Date
    May 2007
    Location
    Hamilton
    Posts
    3,604

    Default

    Hi Sifu,

    Are you talking about building depreciation or chattels?

    Building stopped 1/4/11, so only applies if you have rented for a long time. And this is the one you have to be aware of and most likely pay back (depreciation recovery).

    If just chattels, generally these wear out and there is no recover, so nothing to return.

    Ross
    More Profit from Property? TEACH ME MORE
    Ross Barnett - Coombe Smith Property Accountants
    Proud to give the best property advice for over 13 years.

  3. #3

    Default

    Quote Originally Posted by Rosco View Post
    Hi Sifu,

    Are you talking about building depreciation or chattels?

    Building stopped 1/4/11, so only applies if you have rented for a long time. And this is the one you have to be aware of and most likely pay back (depreciation recovery).

    If just chattels, generally these wear out and there is no recover, so nothing to return.

    Ross

    Hi Rosco

    Thanks for the reply, I only bought my rentals a few years back so this would of been after building depreciation stopped.

    I was inquiring about chattels thanks.

  4. #4
    Join Date
    May 2004
    Posts
    2,796

    Default

    Not an accountant, but check the book value of the chattels. If still significant a chattels (re) valuation is probably worth getting.


 

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