If, among the amounts expended with respect to Depreciable Assets held by a Resident (excluding those falling under the following Article; the same applies hereinafter in this Article), there is an amount that was not included in necessary expenses, pursuant to Article 181 (Capital Expenditure), in calculating the amount of real property income, the amount of business income, the amount of timber income, or the amount of miscellaneous income for the year in which the date of expenditure falls, a Depreciable Asset of the same type and useful life as the Depreciable Asset held is deemed to have been newly acquired, with that amount as the acquisition price under paragraph (1) of the preceding Article.
In the case prescribed in the preceding paragraph, if the Resident prescribed in that paragraph has adopted the depreciation method prescribed in Article 120, paragraph (1) (Depreciation Methods for Depreciable Assets) as the depreciation method to be used for the Depreciable Assets held, the amount expended referred to in the preceding paragraph may, notwithstanding the preceding paragraph, be added to the acquisition price of that Depreciable Asset under the provisions of the preceding Article.
In the case prescribed in paragraph (1), if the Depreciable Asset held by the Resident prescribed in that paragraph is a leased asset (meaning a leased asset prescribed in Article 120-2, paragraph (2), item (iv) (Depreciation Methods for Depreciable Assets); the same applies hereinafter in this paragraph), the Depreciable Asset deemed to have been newly acquired under the provisions of paragraph (1) is deemed to fall under a leased asset. In this case, Article 120-2 is applied by treating the lease term prescribed in paragraph (2), item (vii) of that Article for the Depreciable Asset deemed to have been acquired as the period from the day on which the amount expended referred to in paragraph (1) was expended to the last day of the lease term prescribed in that item for the Depreciable Asset held by that Resident.
In the case prescribed in paragraph (1), if the amount expended prescribed in that paragraph is expended in connection with a renewal under Article 57, paragraph (3) (Duration of Fishing Port Water Surface Facility Operation Rights) of the Act on Development, etc. of Fishing Ports and Grounds (Act No. 137 of 1950), the phrase "type and useful life" in paragraph (1) is deemed to be replaced with "type".
In the case where there is an amount that was not included in necessary expenses as prescribed in paragraph (1) with respect to the income tax of a Resident for the year preceding that year, if the Resident has adopted the declining-balance method as the depreciation method to be used for the Depreciable Assets held by the Resident prescribed in that paragraph (excluding assets acquired on or before March 31, 2012; hereinafter in this paragraph referred to as "former Depreciable Assets") and the Depreciable Assets deemed to have been newly acquired under the provisions of paragraph (1) (hereinafter in this Article referred to as "additional Depreciable Assets"), then notwithstanding that paragraph, it may be deemed that one Depreciable Asset has been newly acquired, on January 1 of that year, whose acquisition price under paragraph (1) of the preceding Article is the sum of the acquisition price of the former Depreciable Assets on that day under the preceding Article (if there is an amount already included as depreciation allowance in necessary expenses in calculating the amount of real property income, the amount of business income, the amount of timber income, or the amount of miscellaneous income for each year up to the year preceding that year, the amount obtained by deducting that amount; hereinafter in this Article referred to as "acquisition price, etc.") and the acquisition price, etc. of the additional Depreciable Assets.
居住者のその年の前年分の所得税につき第一項に規定する必要経費に算入されなかつた金額がある場合において、同項に規定する居住者が有する減価償却資産（平成二十四年三月三十一日以前に取得された資産を除く。以下この項において「旧減価償却資産」という。）及び第一項の規定により新たに取得したものとされた減価償却資産（以下この条において「追加償却資産」という。）についてそのよるべき償却の方法として定率法を採用しているときは、同項の規定にかかわらず、その年の一月一日において、同日における旧減価償却資産の前条の規定による取得価額（既に償却費としてその年の前年分以前の各年分の不動産所得の金額、事業所得の金額、山林所得の金額又は雑所得の金額の計算上必要経費に算入された金額がある場合には、当該金額を控除した金額。以下この条において「取得価額等」という。）と追加償却資産の取得価額等との合計額を前条第一項の規定による取得価額とする一の減価償却資産を、新たに取得したものとすることができる。
In the case where there is an amount that was not included in necessary expenses as prescribed in paragraph (1) with respect to the income tax of a Resident for the year preceding that year, if the Resident has adopted the declining-balance method as the depreciation method to be used for the additional Depreciable Assets pertaining to that amount and does not receive the application of the preceding paragraph, then notwithstanding paragraph (1) and the preceding paragraph, it may be deemed that one Depreciable Asset has been newly acquired, on January 1 of that year, whose acquisition price under paragraph (1) of the preceding Article is the sum of the acquisition price, etc. on that day of those additional Depreciable Assets not subject to that application that are of the same type and useful life.
Read this with the articles around it
depreciation allowancemachine translation
「償却費」
The depreciation of a depreciable asset worked out under Article 49, paragraph (1) of the Income Tax Act.
Defined inArticle 120, paragraph (1)· applies only in this subsection
lease termmachine translation
「リース期間」
The period for which an asset is leased, as set in the contract for the lease transaction.
Defined inArticle 120-2, paragraph (2), item (vii)· applies only in this paragraph
leased assetmachine translation
「リース資産」
A depreciable asset that the lessee under a finance lease transaction with no transfer of ownership (所有権移転外リース取引) is treated as having acquired.
Defined inArticle 127, paragraph (3)· applies only in this paragraph
acquisition price, etc.machine translation
「取得価額等」
The acquisition price of a depreciable asset under Article 126, less any depreciation already counted as a necessary expense in working out real property, business, timber or miscellaneous income for earlier years.
Short name set inArticle 127, paragraph (5)· applies only in this article
former depreciable assetmachine translation
「旧減価償却資産」
In Article 127, paragraph (5), a depreciable asset a resident holds, other than one acquired on or before 31 March 2012, which may be combined with an added depreciable asset (追加償却資産) into one asset for the declining-balance method.
Short name set inArticle 127, paragraph (5)· applies only in this paragraph
additional depreciable assetmachine translation
「追加償却資産」
A depreciable asset that paragraph (1) of Article 127 treats a Resident as newly acquiring, of the same kind and useful life as one it already has, for the amount it spent on that asset that was not counted as a necessary expense in the year it was spent.
Short name set inArticle 127, paragraph (5)· applies only in this article