IS3394
Issued
01 Jan 1998

Property previously used otherwise than for deriving income or carrying on a business in New Zealand - application for a special depreciation rate and meaning of "estimated useful life"

Section EG 10 allows the Commissioner to issue special depreciation rates. When determining whether or not to allow a special depreciation rate and the rate (if any) at which such a rate is to be set, section EG 10(2) requires the Commissioner to have regard to the formula set out in section EG 4(3) and the rate of depreciation (if any) adopted by the taxpayer in respect of the property for financial reporting purposes. The formula contained in section EG 4(3) refers to the "estimated useful life" (EUL) of the depreciable property.