Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Timing and quantifying rules - Depreciation

EE 23: Combined pools

You could also call this:

“Combining multiple asset pools into a single pool”

If you’re using the pool method to manage your assets, you can combine any number of pools into one single pool whenever you want. This means you can put all your assets from different pools into one big pool.

When you combine pools, a few things happen. First, the new big pool will have a value that’s the same as adding up all the values of the smaller pools you’ve combined. This value is called the adjusted tax value.

Next, the smaller pools that you’ve combined will have a value of zero at the end of the income year when you combine them. This means they won’t have any value left in them.

Finally, the smaller pools that you’ve combined will no longer exist. They’ll disappear, and you’ll just have the new big pool to work with.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1514574.

Topics:
Money and consumer rights > Taxes
Previous

EE 22: Cases affecting pool, or

“How the value of your pool of assets changes when you add, remove, or sell items”

Next

EE 24: Property ceasing to qualify for pool, or

“When property no longer qualifies for pooling”

Part E Timing and quantifying rules
Depreciation

EE 23Combined pools

  1. A person using the pool method may at any time combine any number of pools to form a single pool.

  2. When a person combines pools,—

  3. the new pool’s adjusted tax value is the same as the sum of the adjusted tax values of the constituent pools; and
    1. the adjusted tax value of each of the constituent pools at the end of the income year in which the pools are combined is zero; and
      1. each of the constituent pools ceases to exist.

        Compare