How much depreciation will I need to pay back?

[Henry Lee]

Hi all,

I am selling my investment property which I've owned for 17 years. Over the 17 years I've claimed 123k in depreciation. Since I've been on a higher income I have benefited by 33% of 123k which is approximately 40.6k.

My question is when I sell will I need to pay the entire 40.6k back?

Thanks
Henry

[Beano]

Hi all,

I am selling my investment property which I've owned for 17 years. Over the 17 years I've claimed 123k in depreciation. Since I've been on a higher income I have benefited by 33% of 123k which is approximately 40.6k.

My question is when I sell will I need to pay the entire 40.6k back?

Thanks
Henry

If you split the title and sell
1 the freehold separately
2: the leasehold for the net book value
Then no there will be no depreciation writeback

[Rosco]

Hi all,

I am selling my investment property which I've owned for 17 years. Over the 17 years I've claimed 123k in depreciation. Since I've been on a higher income I have benefited by 33% of 123k which is approximately 40.6k.

My question is when I sell will I need to pay the entire 40.6k back?

Thanks
Henry

Hi Henry,

it depends.

How much is chattels depreciaton, how much is building depreciation?
What is the building really worth now vs the closing book value.

As with most things I would suggest getting specific advice from a property accountant, and this might also help https://cswaikato.co.nz/index.php/la...n-auckland/131

Ross