Garden shed depreciation

Question from Rob updated on 1st August 2013:

I'm trying to find the most appropriate depreciation rate for a garden shed (approx. 2.3 x 1.6m) on my new residential rental property. Garden sheds aren't listed specifically in the list of chattles under Residential Rental Property in the IR265. I understand that garden sheds aren't usually considered as buildings because of their size so haven't used any of the buildings in the Asset category and I haven't seen anything similar in the other industry categories. Could you tell me what the common/accepted practice is for this asset please?

Our expert Mark Withers responded:

The closest listing for a garden shed would probably be portable buildings under The Buildings and structures industry category. Portable buildings have a 12.5 year estimated useful life and a diminishing value rate of 13.5% or a straight line rate of 8% It is only buildings with estimated useful lives in excess of 50 years that are no longer depreciable.

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

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