Depreciation

Identifying the relevant item of property

IS 25/03 and fact sheet

This IS provides guidance on how to identify the relevant item of property when applying the depreciation rules.

Depreciation loss on asset no longer used

TDS 24/23

This TDS considered whether the taxpayer had a depreciation loss when an asset could no longer be used.

Changing to a different depreciation rate

QB 15/03

Depreciation roll-over relief for Canterbury

QB 14/04

Do the historic depreciation rates continue to apply to grandparented structures acquired before 1 April 2005?

QB 12/10

This QWBA considers whether historic depreciation rates continue to apply to grandparented structures acquired before 1 April 2005. “Grandparented structures” are items that have been treated as structures in the past but now come within the meaning of “buildings”.

Transfer of depreciable property between associated persons – s EE 33 of the Income Tax Act 2004

SPS 07/05

This SPS sets out factors considered by the Commissioner regarding depreciation and the transfer of depreciable property between associated persons.

Effect of repeal of Income Tax Act 1994 on depreciation determinations issued before repeal

QB Apr 2006

This QWBA clarifies that depreciation determinations made under the Income Tax Act 1994 continue to apply following its repeal.

Assets under construction

IS3175

This IS considers whether assets still under construction constitute "depreciable property", and if so how the allowable deduction for depreciation is to be determined.

Can owners of existing residential rental properties claim deductions for costs incurred to meet Healthy Homes standards?

QB 20/01

This QWBA discusses the treatment of expenditure incurred by owners of residential rental properties to meet Healthy Homes standards.

Residential Rental Property Chattels

DEP80

This determination provides a list of assets for the 'Residential Rental Property Chattels' industry category.

Depreciation of items of depreciable property

IS 10/01

Claiming depreciation on buildings

IS 22/04 and fact sheet

This IS provides guidance on when building owners can claim depreciation on buildings. It considers the meaning of “building” and the distinction between residential and non-residential buildings.

Elections not to depreciate commercial buildings

QB 21/11

This QWBA sets out the position for taxpayers making an election to not depreciate their commercial building.

The application date for the depreciation of commercial buildings

QB 21/05

This QWBA clarifies when the new rules providing for the depreciation of commercial buildings apply from.

Depreciation treatment for ‘Buildings with prefabricated stressed-skin insulation panels’

QB 17/01

This QWBA provides guidance on which buildings come within the asset class “Buildings with prefabricated stressed-skin insulation panels” in the “Buildings and Structures “asset category of the Table of Depreciation Rates.

Costs of demolishing an existing building on a building site

QB 14/08

This QWBA confirms that the costs of demolishing an existing building are not part of the cost of a new building and are not deductible as they are of a capital nature. Instead, the costs are considered under the depreciation rules in determining the consideration received from the disposal of the demolished building.

Depreciation of commercial fit-out

QB 13/01

This QWBA explains whether a taxpayer can re-characterise a part of a commercial building into components of commercial fit-out to claim depreciation on those items when they had not been identified as separate depreciable property at the time the taxpayer acquired the property.

Treatment of costs of resource consents

IS 18/06

Treatment of New Zealand patents

IS 17/05

This IS considers the income tax treatment of New Zealand patent applications, New Zealand patents and New Zealand patent rights. It specifically considers the depreciation treatment of these assets.

Computer software acquired for use in a taxpayer’s business

IS 17/04

Deductibility of farmhouse expenses

IS 17/02

Treatment of quad bikes for depreciation purposes

QB 12/02

Tax treatment of allowances paid to chainsaw operators

QB 15/08

Deductibility of business relocation costs

IS 10/06

Tax Treatment of wooden scaffolding planks

QB (2006)

Fishing nets

QB 2003

Meaning of “obsolescence” in the definition of “estimated useful life”

IS 11/01

This IS explains the meaning of the term “obsolescence” in the definition of “estimated useful life” in the depreciation rules.

Estimated useful life and lease terms

IS 10/05

This IS addresses whether a lease term is a relevant factor in determining an items estimated useful life for the purposes of setting a special depreciation rate.

Property previously used otherwise than for deriving income or carrying on a business in New Zealand

IS3394

This IS considers how the definition of “estimated useful life” is applied in setting a special depreciation rate where a taxpayer has depreciable property which was previously used for a purpose other than deriving gross income or carrying on a business in New Zealand.

Change of use event

QB 19/02

This QWBA considers whether a change of use of depreciable property occurs where a business becomes a charity and derives exempt income.