Depreciation recovery time limit?
Question from Tony updated on 18th July 2014:
My wife has paid the recovered depreciation on her rental property that she has owned for 20 years (it was sold in 2012). Has there been a change in the last two years? Was there still no time limit for repayment of recovered depreciation for the 2012 to 13 tax year? Thanks Tony
Our expert Mark Withers responded:
Tony, there has been no change, there is no time limit on depreciation recovery. Even with the ability to depreciate removed there remains the requirement to recover depreciation historically claimed where buildings are sold above book value.
Mark Withers and his team at Withers Tsang & Co specialise in advising on property related transactions, valuation and restructure services and tax planning.