General Depreciation Determination DEP69

Determination DEP69 (May 2008) sets a general depreciation rate for flight simulators.

This determination may be cited as "Determination DEP69: Tax Depreciation Rates General Determination Number 69".

Note to determination DEP69:

This determination applies both to the 2007/2008 income year, and the 2008/2009 and subsequent income years and is issued pursuant to section 91AAF of the Tax Administration Act 1994, having regard to the application of section ZA 2(2) of the Income Tax Act 2007.

1. Application

This determination applies to taxpayers who own items of depreciable property of the kinds listed in the table below.

This determination applies for the 2007/2008 and subsequent income years.

2. Determination

Pursuant to section 91AAF of the Tax Administration Act 1994 I set in this determination the economic rates to apply to the kinds of items of depreciable property listed in the table below by:

Adding into the "Transportation" asset category the general asset classes, estimated useful lives, and diminishing value and straight-line depreciation rates listed in the table below.

General asset class	Estimated useful life	DV rate (acquired before 1/4/05) (%)	SL rate (acquired before 1/4/05) (%)	DV rate (acquired on or after 1/4/05 (%)	SL rate (acquired on or after 1/4/05 (%)
Flight Simulators (FTD and FNPT Certifiable) Aircraft Specific (full-motion)	15.5	12	8	13	8.5
Flight Simulators (FTD and FNPT Certifiable) Aircraft Specific (non-motion)	8	22	15.5	25	17.5
Flight Simulators (FTD and FNPT Certifiable) Upgradeable/ Multi Aircraft (non-motion)	15.5	12	8	13	8.5
Flight Simulators (Non-Certifiable) (non-motion)	4	40	30	50	40

Adding into the "Leisure" industry category the general asset classes, estimated useful lives, and diminishing value and straight-line depreciation rates listed in the table below.

General asset class	Estimated useful life	DV rate (acquired before 1/4/05) (%)	SL rate (acquired before 1/4/05) (%)	DV rate (acquired on or after 1/4/05) (%)	SL rate (acquired on or after 1/4/05) (%)
Flight Simulators (FTD and FNPT Certifiable) Aircraft Specific (non-motion)	8	22	15.5	25	17.5
Flight Simulators (FTD and FNPT Certifiable) Upgradeable/ Multi Aircraft (non-motion)	15.5	12	8	13	8.5
Flight Simulators (Non-Certifiable) (non-motion)	4	40	30	50	40

3. Interpretation

In this determination, unless the context otherwise requires, words and terms have the same meaning as in the Income Tax Act 2007 and the Tax Administration Act 1994.

This determination is signed by me on the 30^th day of May 2008.

Susan Price
Senior Tax Counsel, Public Rulings