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The Commissioner has set a general depreciation rate for a new asset class “Carports (freestanding or lean-to)”, under the “Buildings and structures” asset category, within the Commissioner’s Table of Depreciation Rates.
A carport is a simple lean-to structure that is attached to an external wall of a building for support or may be freestanding supported by columns. Most carports may be distinguished from buildings because (whilst they obviously have a roof) they do not have four walls, or if they have walls, they are usually not completely enclosed and/or are not weather-tight.
Lean-to carports, although attached to a wall of a building for support, can be easily removed from a building without damage to the building. In addition, a reasonable person could easily distinguish a carport as a separate structure from a building. A lean-to carport would not be viewed as part of the fabric of a building, therefore is viewed as a separate structure.
Carports designed as an open sided extension of a building roof structure, would not be easily removed without damage to the common roof structure. A reasonable person would not easily distinguish a carport as a separate structure from a building, which is more likely to be viewed as being an extension of the building and form part of the fabric of a building. Carports that are an extension of a building roof structure are not viewed as a separate asset and form part of a building.
If the structure used to shelter cars comprises a roof and four complete, weather-tight walls, then the structure is a building. If the structure to provide shelter for vehicles has a roof, three weather-tight walls and an open front (presence or absence of a door in the opening is irrelevant) it is therefore a building.
This determination applies to taxpayers who own depreciable property of the kind listed in the table below.
This determination applies from the 2015 and subsequent income years.
Pursuant to section 91AAG of the Tax Administration Act 1994, the general determination will apply to the kind of items of depreciable property listed in the table below by:
|Asset class||Estimated useful life
|Carports (freestanding or lean-to)||33.3||6||4|
In this determination, unless the context otherwise requires, words and terms have the same meaning as in the Income Tax Act 2007 and the Tax Administration Act 1994.
This determination is signed by Rob Wells on the 4th day of August 2015.
LTS Manager, Technical Standards