Menu
  allanfell@xtra.co.nz      09 298 8705

Tax facts - Depreciation Allowances

Depreciation allows for the wear and tear on a fixed asset and must be deducted from your income.

Generally you must claim depreciation on fixed assets used in your business that have a lifespan of more than 12 months. However in special circumstances you can elect not to depreciate an asset by applying to the IRD.

Not all fixed assets can be depreciated. Land is a common example of a fixed asset that cannot be depreciated.  Depreciation allowances on most building structures cannot be claimed, however depreciation can still be claimed on a wide range of commercial and industrial building fit-out assets.  For more information, please click here.

You will have to keep a fixed asset register to show assets you will be depreciating. This should show the depreciation claimed and adjusted tax value of each asset. The adjusted tax value is the asset's cost price, less all depreciation calculated since purchase.

To view the depreciation rates and the methods for calculating depreciation, please refer to the IRD Depreciation Guide.

To find out more on how to calculate depreciation on a business asset please give us a call or refer to the IRD Depreciation Rate Finder on the IRD Website.
 

Supplied by CCH Business Fitness NZ

Services

We specialise in giving expert advice to family businesses including contractors, farmers, retailers and clients with investment properties.

View our services

Newsletters

Keep up to date with latest news and views and be informed on the issues concerning your business by subscribing to our newsletters.

Subscribe now

Resources

We offer a range of free, easy to use online resources including calculators, links to useful websites and key financial dates.

View our resources

Contact Us

If you have an enquiry or would like to book an appointment, please feel free to get in touch with us. We're more than happy to help out.

Contact us