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A taxpayer asks whether wood weight loss due to humidity reduction is deductible in personal income tax. The DGT responds that wood is inventory and not investment assets, so depreciation does not apply.
Whether such weight loss would be tax deductible in Personal Income Tax as depreciation or under any other concept.
The felling of tree species for sale is a forestry economic activity where timber constitutes inventory. As these are not investment goods, no amount may be deducted as depreciation. Inventories must be valued at their acquisition cost for the calculation of yields.
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