NAC362.040. Deductions: Depreciation of capitalized costs.

     1. Leasehold improvements and buildings must be depreciated over a 20-year period using the straight-line method.

     2. Fixed machinery and equipment must be depreciated over a 20-year period using the straight-line method.

     3. Mobile machinery and equipment must be depreciated over a 10-year period using the straight-line method.

     4. Automobiles and light service vehicles must be depreciated over a 5-year period using the straight-line method.

     5. An integrated processing assembly must be depreciated over a 20-year period using the straight-line method. Subsequent additions to the unit must also be reported and be depreciated over a 20-year period using the straight-line method.

     6. If any property is disposed of before the end of the depreciation period, the remaining amount of allowable depreciation, if the property had remained in use, may be reported in total as an additional expense of depreciation for the reporting period. The amount of depreciation must be reduced by the amount of any consideration received for the property from sale, insurance recovery, trade-in or any other reimbursement, but not below zero.

     7. A mining operator may petition the Nevada Tax Commission for reconsideration of the allowable depreciation of property. The Commission may adjust the allowable depreciation if the petitioner presents satisfactory evidence that the expected life of the property is longer than that which is provided for in this section.

     [Tax Comm’n, Mine Proceeds Reg. No. 3 § 2, eff. 8-6-80]—(NAC A 9-13-91; R161-05, 2-23-2006; R172-12, 12-23-2013)

Notation

REVISER’S NOTE.

      The regulation of the Nevada Tax Commission filed with the Secretary of State on December 23, 2013 (LCB File No. R172-12), which amended this section, contains the following provision not included in NAC:

      “Sec. 4.  Sections 1, 2 and 3 of this regulation [NAC 362.040 and 362.368] do not apply to or affect:

      1.  Any depreciation of assets approved by the Nevada Tax Commission before December 23, 2013; or

      2.  Any powers or duties of the Department of Taxation or any mining operator relating to any depreciation of assets approved by the Nevada Tax Commission before December 23, 2013.”