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Income Tax Act 2007

Timing and quantifying rules - Depreciation - Definitions

EE 64: Meaning of excluded depreciable property

You could also call this:

“Property bought or used before certain dates that has special tax rules”

Excluded depreciable property is a special type of property for tax purposes. For you, it means property that you bought or started building before 16 December 1991. It also includes property you used or had ready to use in New Zealand before 1 April 1993, but not if it was trading stock. If the property is something you can’t touch, like a trademark, it’s excluded if you used it or had it ready to use before 1 April 1993. Property that is or has been a qualifying asset or improvement for you is also excluded.

However, some property isn’t considered excluded depreciable property. If you had property at the end of the 1992-1993 income year, and the Commissioner let you use certain accounting methods for it, then it’s not excluded. These methods are the standard value method, the replacement value method, or the annual revaluation method.

Also, something called special excluded depreciable property is not included in this definition of excluded depreciable 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=DLM1514731.

Topics:
Money and consumer rights > Taxes
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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“How long you can use property to make money before it wears out or becomes outdated”

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EE 65: Meaning of maximum pooling value, or

“Highest value allowed for pooling depreciable property”

Part E Timing and quantifying rules
Depreciation: Definitions

EE 64Meaning of excluded depreciable property

  1. Excluded depreciable property means, for a person,—

  2. depreciable property for whose acquisition or construction the person entered into a binding contract before 16 December 1991; or
    1. depreciable property that the person used or had available for use for any purpose whatever within New Zealand, other than as trading stock, before 1 April 1993; or
      1. depreciable property that is an intangible item that the person used or had available for use before 1 April 1993; or
        1. depreciable property that is or has been a qualifying asset for the person; or
          1. depreciable property to the extent to which it is or has been a qualifying improvement for the person.

            1. Excluded depreciable property does not include property to which both the following apply:

            2. it existed at the end of the 1992–93 income year; and
              1. the Commissioner allowed it to be accounted for in that income year using the standard value method, the replacement value method, or the annual revaluation method.

                1. Excluded depreciable property does not include special excluded depreciable property.

                2. Repealed
                Compare
                Notes
                • Section EE 64(1)(a): amended (with effect on 1 April 2015 and applying for the 2015–16 and later income years), on , by section 242(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
                • Section EE 64(3) heading: inserted, on , by section 61(1) (and see section 61(3) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
                • Section EE 64(3): inserted, on , by section 61(1) (and see section 61(3) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
                • Section EE 64(3) heading: repealed, on , pursuant to section 11(1) (and see section 11(3) for application) of the COVID-19 Response (Taxation and Social Assistance Urgent Measures) Act 2020 (2020 No 8).
                • Section EE 64(3): repealed, on , by section 11(1) (and see section 11(3) for application) of the COVID-19 Response (Taxation and Social Assistance Urgent Measures) Act 2020 (2020 No 8).
                • Section EE 64 list of defined terms special excluded depreciable property: inserted, on , by section 61(2) (and see section 61(3) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).
                • Section EE 64 list of defined terms special excluded depreciable property: repealed, on , by section 11(2) (and see section 11(3) for application) of the COVID-19 Response (Taxation and Social Assistance Urgent Measures) Act 2020 (2020 No 8).