Do I have to pay depreciation clawback if I move into my rental?
Question from Raj updated on 15th November 2006:
Could you please tell me if I have to pay a depreciation clawback if I move into my rental property?
Our expert responded:
The answer to this question really depends on how long you are going to live in the proeprty for. If you go and live in the property for a short term period, say six months, you would not claim any depreciation and costs (including interest) during this period and there would be no depreciation recovered. If however, the intention is to live in the property long term, then yes, there would be depreciation recovered based on the market value of the property at the time you moved in.
Kenina Court is a director of Acorn Solutions Limited, an accounting firm dedicated to working with clients to help them create wealth. She is an avid property investor, entrepreneur and seminar presenter on asset protection and wealth strategies.
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