Forum Archive Index - July 2000

["Oliver Shapleski" <oliver.shapleski@vuw.ac.nz>]

I would have thought it was arguable that a new cpu WAS a new computer.

My line would be:

A Honda civic with a better engine is still the same Honda Civic; but my
Compaq P I 100mhz computer with a new P III 566mhz cpu ain't a still the
same Compaq.

I haven't read the case yet, but I believe that in Auckland Gas Co the
company substantially upgraded some of its pipes and claimed that the old
ones were so shoddy that the new pipes were "repairs".  PC said no -
substantially new asset.  In any case I think it's a matter of
proportionality, and IMHO there's a solid argument to say that a new CPU is
on the wrong side of the ledger.  A different story with a modem perhaps?

Indeed as Andrew points out, the question is whether the expenditure is of a
capital or revenue nature, and I without researching the issue any more I
would say a new cpu was the former notwithstanding any IRD binding ruling on
the matter.  Has anyone actually been advised properly on this matter by
their accountant/lawyer/IRD?

Oliver


----- Original Message -----
From: Mike Nelson <bb2345@ihug.co.nz>
To: <sharechat@sharechat.co.nz>
Sent: Monday, July 03, 2000 5:09 PM
Subject: Re: [sharechat] Tax amongst the chatter


> I can't see that a new cpu in a computer is any different to a new engine
> in a car ... it's repairs and maintanance.
>
> MN
>
>
> At 03:04 PM 03-07-00 +1200, you wrote:
> >     The depreciation is the expense, and you won't be  allowed to claim
> >something as an expense and a depreciable asset at the same  time!!!
> >----- Original Message -----    From:    Geoff    Ewert    To:
> >sharechat@sharechat.co.nz    Sent: Monday, July 03, 2000 4:48 PM
Subject:
> >[sharechat] Tax amongst the    chatter
> >   Hi Oliver,If you were purchasing a first time    pc.I would agree,but
my
> >understanding re:the purchase of a replacement is more    tax user
> >friendly,One would assume all the chatters are not looking at their
> >first pc purchase.   Regards G
> >
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