Detached deck depreciation?

Question from Tony updated on 6th September 2012:

I have just built a new standalone timber deck, not structurally attached to the house. Can this deck be depreciated under the new tax laws? Timber decks are expected to have a useful life much less than the 50 years as specified by IRD where depreciation is at 0%. 

Our expert Mark Withers responded:

If the deck were attached to the building it would be considered part of the building therefore it could not be depreciated. If it is stand alone and not attached then it is arguably not forming part of the building and may be depreciate. It is a little bit hard to picture how it could be functionally distinct from the building though despite being physically separate. Perhaps contemplate how you would answer to that before taking a tax position on it.

Mark Withers and his team at Withers Tsang & Co specialise in advising on property related transactions, valuation and restructure services and tax planning.

Search the Ask an Expert archive

Browse all questions in the Ask An Expert Archive »

Site by PHP Developer