Residential Rental Property Depreciation Recovered

Question

I have a client who has owned a rental property for a long time so it has depreciation claimed on the dwelling.

They are now renting to a relative at less than the annual costs of the property so there will be Nil income in the 2019 Tax Year.

They may rent again to a non- relative in the future so it is still a rental property and it is not being sold.

At what point is the depreciation recovered on the building's income? Is it still at the final point of sale of the property or do the changes in circumstances mentioned change anything?

Answer

 The property has essentially changed its use to a private asset therefore depreciation recovered should be assessed and accounted for.