All Topics / Help Needed! / Depreciation claimed
If i sell my investment property do i need to pay back the depreciation that i have claimed previously?
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
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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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