If an asset is sold in New Zealand for a price higher than its original cost price, the depreciation recovery income is taxable, however the capital gain on sale of the fixed asset is not taxable.


This is because there is no capital gain tax in NZ.


Hence - it is important the full disposal amount isn't all allocated into "Profit on Disposal" and split these into two categories "Gain on Sale" and "Depreciation Recovery Income".


AssetAccountant™ definitely splits NZ disposals for tax into Gain on Sale / Capital Gain and Recouped Depreciation.


You should be able to see this in the asset view when disposing of an asset (the Sale notes will include this split) as well as in reports that detail disposals (eg the Disposals report) when the sale amount is greater than the original cost.


Note: AssetAccountant™ journals only the accounting treatment of the asset (which doesn't split between capital gain and depreciation). Tax consequences whilst calculated and can be reported on in in AA are not journaled from AA to any of our integration partners' software.