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Determinations: Depreciation determinations

General Depreciation Determination DEP 80: Residential Rental Property Chattels


Note to Determination DEP 80
Following the issue of Interpretation Statement 10/01: Residential Rental Properties - depreciation of items of depreciable property ("IS 10/01") in Tax Information Bulletin Vol 22 No 4 (May 2010) the Commissioner has issued a general depreciation determination to provide a new list for the "Residential Rental Property Chattels" industry category. The list is consistent with the Commissioner’s position set out in IS 10/01 and includes items of depreciable property that are commonly found in residential properties.

Note: Some of these items cost less than $500.00 and under section EE 38 of the Income Tax Act 2007 low cost items (not part of any other property) may be treated as an expense item rather than separate depreciable property. Other items not common to residential rental properties have been removed but taxpayers may use a depreciation rate for a similar item in another industry or asset category. For example, depreciation rates for Spa pools/saunas that are listed in the "Leisure" industry category may be used.


General Depreciation Determination DEP80

1. Application

This determination applies to taxpayers who own depreciable property of the kind listed in the table below.

This determination applies from 1 April 2011, to the 2012 and subsequent income years.

2. Determination

Pursuant to section 91AAF of the Tax Administration Act 1994 I set in this determination the economic rates to apply to the kind of items of depreciable property listed in the table below by:

  • Deleting from the "Residential Rental Property Chattels" industry category all the asset classes, estimated useful lives and depreciation rates listed under that category.
  • Inserting into the "Residential Rental Property Chattels" industry category, the following asset classes, estimated useful lives, diminishing value depreciation rates and straight line equivalent depreciation rates listed below:

    Asset class Estimated useful life (years) DV rate (%) SL rate (%)
    Chattels (default class) 5 40 30
    Air conditioners and heat pumps (through wall or window type) 10 20 13.5
    Air ventilation systems (in roof cavity) 10 20 13.5
    Alarms (burglar/smoke, wired or wireless) 6.66 30 21
    Appliances (small) 4 50 40
    Awnings 10 20 13.5
    Bedding 3 67 67
    Blinds 8 25 17.5
    Carpets 8 25 17.5
    Clotheslines 8 25 17.5
    Crockery 3 67 67
    Curtains 8 25 17.5
    Cutlery 3 67 67
    Dehumidifiers (portable) 4 50 40
    Dishwashers 6.66 30 21
    Drapes 8 25 17.5
    Dryers (clothes, domestic type) 6.66 30 21
    Freezers (domestic type) 8 25 17.5
    Furniture (loose) 10 20 13.5
    Glassware 3 67 67
    Heaters (electric) 3 67 67
    Heaters (gas, portable and not flued) 5 40 30
    Lawn mowers 4 50 40
    Light shades/fashion items affixed to a standard light fitting* 10 20 13.5
    Linen 3 67 67
    Mailboxes 15 13 8.5
    Microwave ovens 4 50 40
    Ovens 8 25 17.5
    Refrigerators (domestic type) 8 25 17.5
    Satellite receiving dishes 12.5 16 10.5
    Stereos 5 40 30
    Stoves 8 25 17.5
    Televisions 5 40 30
    Utensils (including pots and pans) 3 67 67
    Vacuum cleaners (domestic type) 3 67 67
    Washing machines (domestic type) 6.66 30 21
    Waste disposal units (domestic type) 8 25 17.5
    Water heaters (heat pump type) 10 20 13.5
    Water heaters (over-sink type) 10 20 13.5
    Water heaters (other eg, electric or gas hot water cylinders) 15.5 13 8.5
    Water heaters (solar type) 10 20 13.5

* Light fittings are connected to the electrical wiring and part of a residential rental building and without the function of lighting would not be considered complete.

3.  Interpretation

In this determination, unless the context otherwise requires, words and terms have the same meaning as in the Income Tax Act 2007 and the Tax Administration Act 1994.

This determination is signed on 10 November 2011.

 

Rob Wells
LTS Manager, Technical Standards

 

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