Ngā mōhiohio hei āwhina i a koe ki te tono Information to help you apply for a depreciation determination

This information covers applying for a special depreciation rate or higher maximum pooling value in myIR. Provisional depreciation determinations have a different process.

Applying for a provisional depreciation rate

When completing your application for a special depreciation rate you will need to provide the information outlined on this page. If you are applying for a higher maximum pooling value, you will need to complete an Application for a higher maximum pooling value - additional declaration - IR719.

Special depreciation rate determination

After you have completed an initial application and received a notification from us, complete your application for a special depreciation rate and include this information.

Item details

State the name and type of item and describe the design and construction, including the materials it is made from and how is used. Describe what the item does and what it produces, if anything. Include the name of the manufacturer, the model, year and serial number if you know them. 

You can attach more detail in supporting documents at the end of the application.

General depreciation rate

Find the industry or asset category which most closely describes your item. 

Use the depreciation rate finder and calculator on our claiming depreciation page.

Claiming depreciation

Cost price of item

If your application is for a class of items, estimate the typical current cost of 1 item in the class.

If your application is for a specific item, provide the actual cost.

Estimated useful life in years and months

Estimated useful life is how long you reasonably expect the item to earn income, if it is properly maintained. 

When estimating useful life you should account for: 

• aging
• wear and tear
• the item being used up by all business owners
• the item becoming obsolete.

Estimated residual market value (excluding GST)

Estimated residual market value is what you expect the item to be worth at the end of its estimated useful life, provided it is properly maintained. This should be calculated from the date the item was acquired. 

Reasons for application

When you apply, explain how your item would be used differently. 

For example, if your item is likely to be exposed to sun, salt water, abrasives, chemicals or other environmental influences, describe:

• how this may affect your item over a specified period 
• the steps you’ll take to protect and shelter the item 
• how this differs from ordinary use of the item, assuming you maintain it in a reasonable way. 

Documents to attach for special depreciation rates

This might include information:

• describing the item, such as illustrations, photographs, pamphlets, or literature
• relevant to the estimated useful life and residual market value of the item
• showing how the item is depreciated in your financial accounts.

For any online information, include a website link.

Application for a higher maximum pooling value

You will need to complete and submit an Application for a higher maximum pooling value - additional declaration - IR719 form with your application. If you have more than 4 types of item, you may need to attach more copies of this form.