Determinations: Depreciation determinations
Buildings and structures DEP62
| This determination results from the depreciation changes in the Taxation (Depreciation, Payment Dates Alignment, FBT, and Miscellaneous Provisions) Act 2006. This legislation changed the methods for calculating depreciation rates for items of depreciable property. The depreciation rates for certain items that are not buildings, acquired on or after 1 April 2005 are calculated using the double declining balance method (i.e. the diminishing value rate), with a straight-line equivalent. The depreciation rate for buildings, acquired on or after 19 May 2005 is calculated using a straight-line formula, with a diminishing value equivalent. As a result of these legislative amendments, this determination amends the "Buildings and Structures (not specified)" asset class in the "Buildings and Structures" asset category in Determination DEP1: Tax Depreciation Rates General Determination Number 1. This is because the buildings and structures economic rates are calculated using different provisions and also because not all structures are buildings. There are two parts to this determination. The first part applies to structures and to buildings acquired before 19 May 2005. It separates out structures from the "Buildings and structures (not specified)" asset class to create two separate classes: the "Buildings (not specified) (acquired before 19 May 2005)" asset class and the "Structures (not specified)" asset class. The second part of the determination inserts a new asset class: the "Buildings (not specified) (acquired on or after 19 May 2005)" asset class. |
Tax Depreciation Rates General Determination Number 62
This determination may be cited as "Determination DEP62: Tax Depreciation Rates General Determination Number 62".
1. Application
This determination applies to taxpayers who own items of depreciable property of the kind referred to in the asset classes listed below.
There are two parts to this determination. Part A of the determination applies to structures and to buildings acquired before 19 May 2005. Part B of the determination applies to buildings acquired on or after 19 May 2005.
2. Determination
Pursuant to section 91AAF of the Tax Administration Act 1994 I hereby amend Determination DEP1: Tax Depreciation Rates General Determination Number 1 (as previously amended) by:
Part A
- Amending the "Buildings and Structures (not specified)" asset class in the "Buildings and Structures" asset category by removing the words "and structures" and changing the asset class as listed below:
Asset class Estimated Useful life (years) DV banded depn rated (%) SL equiv. banded depn rate (%) Buildings (not specified) (acquired before 19 May 2005)5043 - Inserting into the "Buildings and Structures" asset category the general asset class, estimated useful life, and diminishing value and straight-line depreciation rates listed below:
Asset class Estimated Useful life (years) DV banded depn rated (%) SL equiv. banded depn rate (%) Structures (not specified)5043
Part B
- Inserting into the "Buildings and Structures" asset category the general asset class, estimated useful life, and diminishing value and straight-line depreciation rates listed below:
Asset class Estimated Useful life (years) DV banded depn rated (%) SL equiv. banded depn rate (%) Buildings (not specified) (acquired on or after 19 May 2005)5032
3. Interpretation
In this determination, unless the context otherwise requires, expressions have the same meaning as in the Income Tax Act 2004.
This determination is signed by me on the 27th day of June 2007.
Susan Price
Senior Tax Counsel, Public Rulings
Other pages in: Depreciation determinations
- General Depreciation Determination DEP80: Residential Rental Property Chattels
- Determination DEP79: Remedial matters relating to the depreciation of buildings Depreciation Determination Number 79
- Determination DEP78: Tax Depreciation Rates General Determination Number 78
- Determination PROV21: Tax Depreciation Rates Provisional Determination PROV21
- Determination DEP77: Motor vehicles rented for short-term periods of 1 month or less Depreciation Determination Number 77
- Determination DEP76: Tax Depreciation Rates General Determination Number 76
- Determination DEP75: Tax Depreciation Rates General Determination Number 75
- Determination PROV20: Tax Depreciation Rates Provisional Determination Number PROV20
- Determination DEP 73: Tax Depreciation Rates General Determination Number 73
- Determination DEP74: Tax Depreciation Rates General Determination Number 74
- Determination PROV19: Tax Depreciation Rates Provisional Determination PROV19
- Determination DEP 72: Tax Depreciation Rates General Determination Number 72
- Determination DEP 71: Tax Depreciation Rates General Determination Number 71
- Expense items in the Table of Depreciation Rates
- The Commissioner's Table of Depreciation Rates
- General Depreciation Determination DEP70
- General Depreciation Determination DEP69
- General Depreciation Determination DEP68
- Determination DEP66: Tax Depreciation Rates General Determination Number 66
- Tax Depreciation Rates General Determination Number 67
- Determination Prov18: Tax depreciation rates provisional determination number 18
- Tax Depreciation Rates General Determination Number 65
- Tax Depreciation Rates General Determination Number 64
- Draft general depreciation determination - exposure draft DDG0112
- Tax Depreciation Rates General Determination Number 63
- Child restraints (capsules and car seats) for hire DEP61
- Determination Prov17: Tax depreciation rates provisional determination number 17
- Tax Depreciation Rates General Depreciation Determination DEP60
- Provisional Depreciation Determination PROV16
- Provisional Depreciation Determination PROV15
- Provisional Depreciation Determination PROV14
- Provisional Depreciation Determination PROV13
- General depreciation determinations DEP55 to DEP59
- General Depreciation Determination DEP54
Date published: 29 Jun 2007
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