Chattels are the moveable items in a rental you can depreciate for tax. What qualifies, the $1,000 write-off threshold, and why buildings don't count.
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Chattels depreciation is a tax deduction claimed on the moveable items within a rental property — carpet, curtains, appliances, heat pumps, furniture — reflecting their loss of value over time.
Residential rental buildings cannot be depreciated in New Zealand. The rate has been 0% since 2011. Commercial and industrial buildings briefly regained a 2% straight-line deduction from the 2020–21 year, but that was removed again from 1 April 2024.
Land is never depreciable under any circumstances.
So for residential investors, chattels are where essentially all depreciation deductions arise.
Individual assets costing $1,000 or less (GST-exclusive if you're GST-registered) can be written off in full in the year of purchase rather than depreciated over time.
The threshold applies per item. You cannot split one asset into components to get under it, but several separate items are each assessed individually.
Most landlords use DV for the earlier cashflow benefit. IRD publishes rates by asset category.
Chattels must be identified and valued to be claimed. If the purchase records don't separate chattels from the building, the deduction usually gets weaker, not stronger. A chattels valuation at purchase is often worth more than it costs.
Depreciation can be clawed back. If chattels are sold for more than their depreciated value, the difference may be recovered as income.
Last reviewed: 1 August 2026 · General information only, not tax advice.
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