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New Zealand law explained for everyone

Income Tax Act 2007

Timing and quantifying rules - Depreciation

EE 10: Calculation rule: item temporarily not available

You could also call this:

“How to treat items temporarily unavailable due to repairs or inspection”

If you have an item that can lose value over time, and you usually use it or have it ready to use, there’s a special rule to remember. Even when you need to fix or check the item for a short time, the law still treats it as if you can use it. This applies if you were using the item or had it ready to use just before you sent it for repairs or inspection.

For example, if you have a machine in your workshop that you use every day, and you need to get it fixed, the law still sees it as available for use while it’s being repaired. This rule helps keep things simple when thinking about how the item’s value changes over time.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1514521.

Topics:
Money and consumer rights > Taxes
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EE 9: Description of elements of calculation, or

“Elements involved in calculating depreciation loss”

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EE 11: Calculation rule: income year in which item disposed of, or

“How to calculate depreciation in the year you dispose of an item”

Part E Timing and quantifying rules
Depreciation

EE 10Calculation rule: item temporarily not available

  1. An item of depreciable property is treated as being available for use while subject temporarily to repair or inspection, if it was used or available for use immediately before going for repair or inspection.

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