Menu

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

Client Login

Secure Client Login

This is where our clients can log into their own personalised secure area to access documents, files, accounting data, and financial reports.

Login now

Newsletters

Newsletter Subscription

Subscribe to our regular online newsletters which include the latest company news and helpful accounting tips and information.

Subscribe now

Tools and Resources

Tools & Resources

We offer a range of free and easy to use online resources ranging from key financial dates and tax facts to calculators.

View Resources

Software Solutions

Software Solutions

Let us help you make the right choice of accounting software to ensure you have the best accounting solution for your business.

View Solutions