I own an existing property without a mortgage. If I purchase a new home for my own use that requires a substantial mortgage then is there any way I can structure ownership so that the new borrowing is attributed to the old property (now be the renter)? Thanks.
I am in negotiations to sell a rental property and a building inspection has indicated the piles need to be re-done. This property will be subject to a similar amount of depreciation clawback as what the estimated costs are to make good. So is it a case of the expense of the work off-setting the clawback? Or is it a double whammy cost to selling this property? The price I am selling for is more than I purchased, however, the land value increase may well account for most of this. I will be getting further information from my valuer on this also.
Late 2012 we sold a rental that was 10 years old. We had claimed $21,000 in building depreciation and $10,000 on chattels (a portion of the chattel depreciation was the incorrect breakdown of some building components like partitions). We understand we will have to pay back the full building depreciation but we're not sure how much of the chattels. We consider the chattels are at the end of their life and nearly fully depreciated (other than a new hot water heater and stove in recent years). Also, will recovery include the over claimed depreciation component as mentioned above?