COMMERCIAL BUILDINGS
TAXATION DEPRECIATION REDUCTION OF ALLOWANCE An important change applying to income tax returns for the year ending to-morrow is a ■ general reduction by J per cent in the rates of depreciation allowable on commercial buildings. The effect of this, of course, is to increase the total sum assessable for payment of tax.
The new rates of depreciation are:— Reinforced concrete building, 1 per cent on cost; brick, stone or concrete walled, 1J per cent on cost; steel-framed, covered with iron. 1 per cent on cost of steel frame only; wood-framed. 2 j per cent on cost.
Business interests point out that it is obvious the department's basis of depreciation 'would not-cover the normal useful life of a building. While a concrete building, on which the rate is 1 per cent, might last for 100 years, itwoukl doubtless have to be replaced long before that if business progress is maintained and if styles of construction and design continue to change.
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New Zealand Herald, Volume LXXVII, Issue 23618, 30 March 1940, Page 10
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161COMMERCIAL BUILDINGS New Zealand Herald, Volume LXXVII, Issue 23618, 30 March 1940, Page 10
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