Question from Zane updated on 4th May 2012:
Our expert Mark Withers responded:
Despite the fact that the building is no longer depreciable the chattels and furniture items are. This deduction is claimed each year against the rental earned. Ultimately, the depreciation is subject to recovery if the sale price or market value when you ceased renting them is greater than their 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.