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  1. #11
    Join Date
    May 2004
    Posts
    2,901

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    Quote Originally Posted by Anthonyacat View Post
    No, that's exactly what this bill is - items that would otherwise be capital expenditure become deductible in the year of purchase. It's always been the case that if you buy say a $300 microwave for your rental, you claim it in full because despite it being capital and expected to last several years, it's under $500. That $500 limit is now extended to $5,000. Heat pumps and carpet are absolutely now claimable in full for the next year. Same with a DVS/HRV system, or a solar system - assuming you get it under $5k.

    However, there is a further restriction, I think the wording is "assets that become part of another asset" - I'd need to go read the legislation or case law to be sure. But that is to say, something like a wall, which is not in itself a separate asset, but part of the house, is not deductible even if it costs under $500. In most cases I'd expect a new roof, bathroom reno, or new kitchen are considered part of the house, not an asset in their own right.

    As in your last paragraph, the asset has to be depreciable (ie not capital) or a repair (but not an improvement), and under the new dollar threshold. Some of the items on the list given would be hard to justify as meeting all of those.

  2. #12

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    Hi, can someone please confirm the depreciation rate of heat pumps?

    Looking through the IRD web site and considering residential rental property chattels, it looks like heat pumps would be line item "Heater (Electrical)" which is 67% per year?

    Thanks, Ash

  3. #13
    Join Date
    Oct 2013
    Posts
    1,708

    Default

    Quote Originally Posted by AshAuck View Post
    Hi, can someone please confirm the depreciation rate of heat pumps?

    Looking through the IRD web site and considering residential rental property chattels, it looks like heat pumps would be line item "Heater (Electrical)" which is 67% per year?

    Thanks, Ash
    20% Diminishing or 13.5% Straight Line.

    Use the IRD's website depreciation rate finder: https://interact2.ird.govt.nz/forms/depnrates/

    Choose 2006 and future rates
    Choose Search for a specific asset across all industry and asset categories
    Type in "Heat Pump"
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