Tax question - depreciation (simple for someone who knows!)

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Forums › Finance and wealth management › Tax question - depreciation (simple for someone who knows!)

JayADee

2234 posts

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+1 received by user: 478

#194965 1-Apr-2016 08:06

Do you happen to know when depreciating an asset do you depreciate ird's percentage (example 67% straight line) of the total price or for only 5/12 of 67% because I've only owned it five months?

Simple question for someone who knows these things but I can't find it on their page...which makes me think it must be 67% of the whole total but I want to be sure.

Thank you!

andrew027

1286 posts

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+1 received by user: 557

#1523701 1-Apr-2016 08:38

I am not an accountant (but I have a good one), but have depreciated a number of assets for a couple of businesses I run, and I'm 99.9% sure that you need to pro-rata the depreciation for the time you have owned the asset (e.g. the 5 months, not the full 12 months).

If you work through IRD's depreciation calculator it should let you know.

JayADee

2234 posts

Uber Geek
+1 received by user: 478

#1523703 1-Apr-2016 08:43

andrew027:
I am not an accountant (but I have a good one), but have depreciated a number of assets for a couple of businesses I run, and I'm 99.9% sure that you need to pro-rata the depreciation for the time you have owned the asset (e.g. the 5 months, not the full 12 months).

If you work through IRD's depreciation calculator it should let you know.

Thank you I will check out your link. :)

Edit: calculator was great, thanks! (and answer is it is for the time owned...)