Menu
Banner

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.  Also from 1 April 2011, 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

business

Business Services

Our aim is to provide you with advice when your business needs it - not just when you ask for it.

Tax

Tax Services

We work in partnership with you to minimise your tax and help you achieve your key objectives.

specialist

Specialist Services

We've developed our traditional accounting practices into innovative client-focused services.

Client Resources

We offer a range of free and easy to use online resources including...

calcs
Calculators
keydates
Key Dates
taxfacts
Tax Facts
links
Useful Links

Contact Details

Physical Address
415 Cameron Road (Cnr Eighth Avenue
Cameron Road)
Tauranga 3110

Postal Address
PO Box 2046
Tauranga 3144

Telephone Number
07 578 6161

Fax Number
07 578 0940

E-mail
Use the following link to e-mail us directly.

CA Reckon xero myob Feesmart