Recapture & Transfer Rules under the New Depreciation Decision

The new decision doesn’t just introduce depreciation—it also sets out recapture rules and guidance for transfers, restructurings, and group reorganizations involving investment properties.

Recapture & Transfers:

• Depreciation claimed must be added back (recaptured) upon sale or transfer of property.
• Relief may apply for intra-group transfers or approved restructurings.

• For related-party transactions, fair value and original cost principles determine taxable gain.

• Businesses must track tax written-down value (TWDV) carefully over time.

Conclusion

New depreciation rules come with recapture obligations — track your property movements carefully.

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