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  1. #1

    Default How much depreciation will I need to pay back?

    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

  2. #2
    Join Date
    Mar 2015
    Location
    Brisbane Wellington Auckland
    Posts
    946

    Default

    Quote Originally Posted by Henry Lee View Post
    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

  3. #3
    Join Date
    May 2007
    Location
    Hamilton
    Posts
    3,684

    Default

    Quote Originally Posted by Henry Lee View Post
    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
    Not sure where to start, book a free chat for 5-10 minutes https://cswaikato.co.nz/services-pro...s-hamilton/201
    Ross Barnett - Coombe Smith Property Accountants



 

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