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IS 22/04
Issued
20 Jul 2022

Claiming depreciation on buildings

This interpretation statement provides guidance to building owners on when they can claim depreciation on buildings.  It considers the meaning of “building” for depreciation purposes and the distinction between residential and non-residential buildings.  The statement is accompanied by a fact sheet.

IS 22/04 will be published in the September Tax Information Bulletin.

Related document

IS 22/04: Claiming depreciation on buildings (fact sheet)

Income Tax Act 1976 – s 108
Income Tax Act 2007 – ss DA 1, DB 65, sub-part EE, ss EZ 13-15, EZ 22, EZ 23BD, YA 1 (definitions of “building”, “commercial building”, “commercial fit-out”, “dwelling”, “grandparented structure”, “independent living”, “non-residential building”, “plant”, “residential building”)
Tax Administration Act 1994 - ss 113, 113A, 91AAG

Australian Building Construction Employees’ & Builders Labourers’ Federation v Dillingham Australia Ltd (1982) 58 FLR 170
Barat v Minister of National Revenue [1991] 2, CTC 2,360
Clarke v Wilkie (1977) 17 SASR 134
Harris v De Pinna (1886) LR 33 Ch D 238
Hilderbrandt v Stephen [1964] NSWR 740
Melfort Danceland v Star City (Rural Municipality) [1977] 3 WWR 737
Mercury NZ Limited v Commissioner of Inland Revenue [2019] NZHC 1524, (2019) 29 NZTC, 24,014 (HC)
Metals & Alloys Co v Ontario Regional Assessment Commissioner (1985) 36 RPR 163
Moir v Williams [1892] 1 QB 264
Tasman Forestry Limited v CIR (1999) 19 NZTC 15,147 (CA)
R v Marks ex Australian Building Construction Employees’ and Builders Labourers’ Federation, (1981) 147 CLR 471
R v Swansea City Council ex p Elitestone Ltd (1993) 66 P & CR 422
Stevens v Gourley (1859) 7 CBNS 99
Spencer v Soljan (1984) 10 NZTPA 289