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Income Tax Act 2007

Timing and quantifying rules - Depreciation - Definitions

EE 66: Meaning of poolable property

You could also call this:

“What property can be grouped together for tax depreciation”

Poolable property is something you own that can be depreciated for tax purposes. It’s not a building. For it to be poolable property in a particular income year, it needs to meet certain conditions.

You can consider an item as poolable property if you bought it during the income year and it cost the same or less than the maximum pooling value. It can also be poolable if you used to account for it separately, but at the start of the income year, its adjusted tax value was the same or less than the maximum pooling value. Another way it can be poolable is if you used the globo accounting method to account for it at the end of the 1992-93 income year, with the Commissioner’s permission.

For an item to be poolable property, you need to use it entirely for earning assessable income or running a business to earn assessable income. If you don’t use it entirely for these purposes, the part you don’t use this way needs to be subject to fringe benefit tax.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1514738.

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“Highest value allowed for pooling depreciable property”

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EE 67: Other definitions, or

“Definitions for calculating property value loss over time”

Part E Timing and quantifying rules
Depreciation: Definitions

EE 66Meaning of poolable property

  1. Poolable property, for an income year, means an item of depreciable property that a person owns to which subsections (2) to (4) apply.

  2. The item is not a building.

  3. The item—

  4. is acquired in the income year for a cost equal to or less than its maximum pooling value; or
    1. was previously accounted for separately but has, as at the start of the income year, an adjusted tax value equal to or less than its maximum pooling value; or
      1. was accounted for at the end of the 1992–93 income year using, with the Commissioner’s permission, the globo accounting method.

        1. The item—

        2. is wholly used or available for use by the person in deriving assessable income or carrying on a business for the purpose of deriving assessable income; or
          1. to the extent to which it is not wholly used or available for use by the person in deriving assessable income or carrying on a business for the purpose of deriving assessable income, is used in a way that is subject to fringe benefit tax.

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            Notes
            • Section EE 66 list of defined terms building: inserted (with effect on 30 July 2009), on , by section 84 of the Taxation (Budget Measures) Act 2010 (2010 No 27).