On shaky ground
Question from Jo updated on 29th July 2011:
Our expert Mark Withers responded:
On 16 March 2011 the Minister of Revenue Peter Dunne issuesd a press release advising that he is working on a number of tax initiatives designed to bring relief to those effected by the Quake, this is to include depreciation issues including clawback of depreciation from the insurance proceeds on destroyed buildings so I guess we watch this space for developments.
Also be aware that section EE47 allows as a deduction a loss on disposal of a building in the event that it is irreparably damaged by fire or natural disaster. This could arise if the insurance proceeds fall short of the book value of the building. This section is important because in other circumstances the loss on disposal of a building is not deductible.
Mark Withers and his team at Withers Tsang & Co specialise in advising on property related transactions, valuation and restructure services and tax planning.