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Income Tax Act 2007

Timing and quantifying rules - Depreciation - Definitions

EE 62: Meaning of depreciable intangible property

You could also call this:

“What counts as property you can claim depreciation on that you can't physically touch”

Depreciable intangible property is a specific type of property that you can find listed in [schedule 14]. This schedule contains a list of items that are considered depreciable intangible property.

For something to be included in [schedule 14], it needs to meet two main criteria. First, it must be intangible, which means you can’t touch or hold it physically. Second, it must have a limited useful life that you can estimate with reasonable certainty when you acquire it.

However, it’s important to note that even if an item doesn’t meet these criteria, it’s still considered depreciable intangible property if it’s listed in [schedule 14]. This means the list in the schedule is the final say on what counts as depreciable intangible property.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1514724.

Topics:
Money and consumer rights > Taxes
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EE 61: Meaning of annual rate, or

“How the yearly depreciation rate is calculated for different types of property”

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EE 63: Meaning of estimated useful life, or

“How long you can use property to make money before it wears out or becomes outdated”

Part E Timing and quantifying rules
Depreciation: Definitions

EE 62Meaning of depreciable intangible property

  1. Depreciable intangible property means the property listed in schedule 14 (Depreciable intangible property).

  2. For property to be listed in schedule 14, the criteria are as follows:

  3. it must be intangible; and
    1. it must have a finite useful life that can be estimated with a reasonable degree of certainty on the date of its acquisition.

      1. Property that is listed in schedule 14 is depreciable intangible property even if the criteria are not met.

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