Plain language law

New Zealand law explained for everyone

EE 61: Meaning of annual rate
or “How the yearly depreciation rate is calculated for different types of 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.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

Next up: EE 63: Meaning of estimated useful life

or “How long you can use property to make money before it wears out or becomes outdated”

Home
Income Tax Act 2007
Timing and quantifying rules
Definitions
EE 62: Meaning of depreciable intangible property

Part E Timing and quantifying rules
Depreciation: Definitions

EE 62Meaning of depreciable intangible property

Depreciable intangible property means the property listed in schedule 14 (Depreciable intangible property).
For property to be listed in schedule 14, the criteria are as follows:
it must be intangible; and
it must have a finite useful life that can be estimated with a reasonable degree of certainty on the date of its acquisition.