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Income Tax Act 2007

Deductions - Terminating provisions

DZ 17: Expenditure on improvements to aquacultural business before 1995–96 income year

You could also call this:

“Tax deduction for pre-1996 aquaculture business improvements”

If you spent money to improve your aquaculture business before the 1995-96 income year, you might be able to claim some of that money back on your taxes. This applies if you would have been allowed to claim the money under section DO 12 if you had spent it in the 1995-96 income year or later.

To figure out how much you can claim, you need to use a special calculation. You multiply 125% by a percentage from schedule 20, parts B to F, and then multiply that by the reduced value of your improvement.

The percentage you use depends on what kind of improvement you made. You can find this in the schedule mentioned above.

The ‘reduced value’ means the current value of your improvement, which is probably less than what you originally paid for it.

Remember, even though this rule lets you claim for improvements made before 1995-96, you still need to follow the general rules about what you can claim on your taxes.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1514256.

Topics:
Money and consumer rights > Taxes
Business > Industry rules
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“Rules for claiming expenses on geothermal wells completed or purchased between 31 March 2003 and 17 May 2006”

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DZ 18: Expenditure on improvements to forestry land before 1995–96 income year, or

“Money back for pre-1995 forestry land improvements”

Part D Deductions
Terminating provisions

DZ 17Expenditure on improvements to aquacultural business before 1995–96 income year

  1. This section applies in an income year when a person incurs expenditure—

  2. before the 1995–96 income year in making an improvement for the purposes of an aquacultural business; and
    1. for which they would be allowed under section DO 12 (Improvements to aquacultural business) a deduction in the income year if the expenditure had been incurred in the 1995–96 income year or a later income year.

      1. The person is allowed a deduction in the income year of an amount calculated using the formula—

        125% × schedule percentage × diminished value.

        Where:

        • In the formula,—

        • schedule percentage is the percentage set out opposite the description of the improvement in schedule 20, parts B to F, column 2 (Expenditure on farming, horticultural, aquacultural, and forestry improvements):
          1. diminished value is the diminished value of the improvement.

            1. This section overrides the capital limitation. The general permission must still be satisfied and the other general limitations still apply.

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