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Business income tax
Tāke moni whiwhi mō ngā pakihi
Business income tax: Depreciation

Fixed asset records

  • An asset is something the business owns.
  • A fixed asset is an asset you generally expect to use in your business for more than a year.
  • You cannot deduct the full cost of purchasing these assets from your taxable income in the year of purchase. You can, however, claim depreciation.
  • You need to prove the purchase and sale of any fixed asset with a tax invoice.
  • If you start using a private asset for business purposes or if you keep business assets for private use after you stop operating, you have to confirm that the asset is valued at market value. This may mean getting an independent valuation.
  • Using a fixed asset register is a good way to keep track of these assets.
  • Your fixed asset register may look like this.

Fixed asset register

Description Serial Number Cost of values Date Purchased Remarks
Laser Printer 721 $890.00 01/10/98  
Personal Computer 722 $2,500.00 01/10/98  
Software 723 $1,000.00 01/10/98  
Desk 724 $500.00 01/10/98  
Chair 725 $250.00 01/10/98  
Car 726 $30,000.00 01/06/99  
Modem 727 $375.00 01/07/99  
Reception Desk 728 $1,000.00 28/08/99  
Telephone System 729 $490.00 28/08/99  
Fax 730 $450.00 15/10/99  
Pictures 731 $500.00 11/04/00  
Cafeteria Table 732 $100.00 12/05/00  
Refrigerator 732 $900.00 12/08/00  


The cost or value excludes GST if you are registered for GST.