Amendments In Depreciation

Depreciation method for newly acquired buildings

For buildings acquired on or after April 1,1998, the declining balance method of depreciation can no longer be applied. Straight line depreciation will be required.

Statutory durable years for buildings

The statutory durable years for a building are shortened by between 10% - 20% from the fiscal year, which begins on or after April 1,1998. For currently owned buildings using the straight line method, the depreciation rate to be applied is increased to reflect the new shorter life. For currently owned buildings using accelerated method, the new rate is applied to net book value of the building as of the beginning of the new fiscal year.