Post 2012 building disposal loss?

Question from Tim updated on 17th July 2013:

Now that the depreciation rate for buildings has been set to 0%, does that mean you can claim a loss on the disposal of building that has been sold in 2012 or later? If buildings didn't depreciate in value, then surely the IRD would have just said that the buildings were exempt for depreciation, rather than at a rate of 0%?

Our expert Mark Withers responded:

No, losses on disposal of buildings held on capital account remain non deductible. It's interesting to contemplate what might happen under a capital gains tax though. Obviously gains would be taxable, but I suspect that capital losses would be ring fenced and carried forward only to be claimed against other future capital gains. But this is all pure speculation on my part.

Mark Withers and his team at Withers Tsang & Co specialise in advising on property related transactions, valuation and restructure services and tax planning.

Search the Ask an Expert archive

Browse all questions in the Ask An Expert Archive »

Site by PHP Developer