IRD stance on building depreciation

[jace the ace]

I noticed in the February 2010 property investor magazine that IRD are reiterating their stance on their may 2006 interpretation statement for claiming building fitout seperately from the building.

Has anyone made the adjustments to add back any building fitout items to the building value for depreciation.

I've heard some accountants say that the IRD interpretation is wrong & they just continue to claim depreciation based on seperating out the building fitout to depreciate at higher rates.

Has anyone challenged the IRD on their interpretation,and if so what was the outcome.

[CJ]

I haven't heard about it going through the courts so unless everyone has just folding into the IRD, then they aren't challenging it.

Possible changes in the May budget may provide all the certainty we need (ie. no depn at all) at which point, my guess is the IRD will drop it.

I beleive their view is on shaky ground. If a registered valuer identifies an asset, and the IRD have provided a deprecation rate for that asset, then why wouldn't you be able to claim depreciation on it.