Income tax – identifying the relevant item of property for depreciation purposes

This interpretation statement provides general guidance on how to identify the relevant item of property when applying the depreciation rules in the income tax legislation.  The relevant item must be identified to ensure it is a depreciable item and, if so, to determine the applicable depreciation method and rate from which amounts of depreciation losses may be calculated.  In many cases, this will be relatively straightforward.  However, in some cases it may be unclear whether an item is a standalone item of property or part of another item of property.

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