SearchPost 2012 building disposal loss?
Tim asks:
(updated on Wednesday, July 17th 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 Experts Answer:
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.
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