Can I live in my depreciated rental?
Question from Jo updated on 11th September 2009:
Our expert Mark Withers responded:
Moving into a property that has been depreciated triggers a "deemed disposal" of the property. This typically results in the recovery of depreciation that has been claimed. If you don't want to depreciate a property you must make a non-revocable written election to the tax department. Believe it or not but if you haven't elected not to depreciate and simply have failed to depreciate IRD can require you to recover the depreciation you should have claimed!
Mark Withers and his team at Withers Tsang & Co specialise in advising on property related transactions, valuation and restructure services and tax planning.