All Topics / Help Needed! / Depreciation claimed

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  • Profile photo of YEONGYEONG
    Participant
    @yeong
    Join Date: 2012
    Post Count: 2
    September 14, 2012 - 1:03 pm

    If i sell my investment property do i need to pay back the depreciation that i have claimed previously?

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    September 14, 2012 - 10:34 pm

    I think you will find that you do pay it back in a sense because capital works deductions reduce the cost base meaning you will pay higher CGT.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
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    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of CatalystCatalyst
    Participant
    @catalyst
    Join Date: 2008
    Post Count: 1,404
    September 14, 2012 - 10:51 pm

    no

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    September 15, 2012 - 12:48 pm

    If you mean the Depreciation then No you don't pay that back but if you mean the Capital allowance claim then the cost base is reduced by the amount claimed.

    i.e  purchase price $300K and you have claimed 10 years worth of Capital Allowance at say $40,000 your cost base would be reduced to $260,000 for CGT purposes.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

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