# Calculate New Zealand asset depreciation

Calculate this year’s depreciation deduction and written-down value for equipment, vehicles and other plant, with up to ten years ahead, using the rate you choose.

Canonical: https://aroai.com/tools/nz_asset_depreciation/

## Tool reference

MCP tool ID: `nz_asset_depreciation`. Availability: Live. Country: New Zealand.

Credit use: 1 credit.

## Input schema

```json
{
  "$schema": "https://json-schema.org/draft/2020-12/schema",
  "type": "object",
  "properties": {
    "asset_description": {
      "type": "string",
      "minLength": 1,
      "maxLength": 160
    },
    "asset_classification": {
      "type": "string",
      "minLength": 1,
      "maxLength": 160,
      "description": "Your selected IRD asset class; the tool does not infer one from the description."
    },
    "asset_type": {
      "type": "string",
      "enum": [
        "equipment",
        "vehicle",
        "building",
        "land",
        "intangible",
        "trading_stock",
        "other"
      ],
      "description": "Choose the asset type yourself. Buildings, land, trading stock and intangibles are outside this schedule."
    },
    "cost": {
      "type": "number",
      "minimum": 0.01,
      "maximum": 100000000,
      "description": "NZD cost. With gst_registered set, enter the GST-inclusive price paid and the tool removes the GST you claimed. Without it, the cost is used as entered (GST-exclusive if you claim all the GST)."
    },
    "gst_registered": {
      "description": "Whether you are GST-registered. Only GST actually claimed is excluded from depreciable cost (ITA s EE 54); unclaimed GST stays in cost. Unregistered: the full GST-inclusive price is the cost.",
      "type": "boolean"
    },
    "gst_claim_percent": {
      "description": "Percentage of the GST on the purchase that you claimed. Defaults to business_use_percent when gst_registered is true.",
      "type": "number",
      "minimum": 0,
      "maximum": 100
    },
    "acquired_date": {
      "description": "Provide this or first_available_for_use_date; if omitted, the other date is assumed.",
      "type": "string",
      "pattern": "^\\d{4}-\\d{2}-\\d{2}$"
    },
    "first_available_for_use_date": {
      "description": "Provide this or acquired_date; if omitted, the other date is assumed.",
      "type": "string",
      "pattern": "^\\d{4}-\\d{2}-\\d{2}$"
    },
    "income_year_end": {
      "type": "string",
      "pattern": "^\\d{4}-\\d{2}-\\d{2}$",
      "description": "End date of the income year to calculate, in YYYY-MM-DD format."
    },
    "business_use_percent": {
      "type": "number",
      "minimum": 0.01,
      "maximum": 100,
      "description": "Percentage used to earn taxable income, from 0.01 to 100."
    },
    "method": {
      "type": "string",
      "enum": [
        "DV",
        "SL"
      ]
    },
    "ird_rate": {
      "type": "number",
      "exclusiveMinimum": 0,
      "maximum": 1,
      "description": "Decimal IRD rate from IR265, for example 0.21 for 21%."
    },
    "low_value_write_off": {
      "default": false,
      "description": "Set true only if the asset's cost is within the limit for its acquisition date and you have confirmed the same-supplier/same-time aggregation and larger-asset rules.",
      "type": "boolean"
    },
    "investment_boost_claimed": {
      "default": false,
      "type": "boolean"
    },
    "new_or_new_to_nz": {
      "description": "Set true when Investment Boost is claimed and the asset has not previously been used in New Zealand.",
      "type": "boolean"
    }
  },
  "required": [
    "asset_description",
    "asset_classification",
    "asset_type",
    "cost",
    "income_year_end",
    "business_use_percent",
    "method",
    "ird_rate",
    "low_value_write_off",
    "investment_boost_claimed"
  ],
  "additionalProperties": false
}
```

## Example input

```json
{
  "asset_description": "Office laptops",
  "asset_classification": "Computers (including laptops)",
  "asset_type": "equipment",
  "cost": 6000,
  "acquired_date": "2026-08-15",
  "income_year_end": "2027-03-31",
  "business_use_percent": 100,
  "method": "DV",
  "ird_rate": 0.5,
  "low_value_write_off": false,
  "investment_boost_claimed": false
}
```

## Usage notes

- Enter the class and rate yourself. Give the purchase or first-use date; with only one, the other is assumed to match.
- Handles part-year apportionment, low-value thresholds and the optional Investment Boost.
- Buildings, land, disposals and changing business use are outside this calculation.