Income Tax Act 2007

Timing and quantifying rules - Depreciation

EE 32: Election in relation to certain depreciable property acquired on or after 1 April 2005

You could also call this:

"Choosing how to calculate depreciation for some items bought after 1 April 2005"

You can choose how to calculate depreciation loss for some items. This applies to items you acquired on or after 1 April 2005. You must make this choice in your tax return for the 2005-06 tax year. You calculate the loss using the economic rate. This rate is determined under section EZ 23. This section tells you how to work out the economic rate for certain items. You must follow the rules to make this choice. The choice is for items that are not buildings. You acquired these items before the start of your 2006-07 tax year.

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Topics:

Money and consumer rights > Taxes

EE 31: Annual rate for item acquired in person’s 1995–96 or later income year, or

"How to work out the annual rate for items bought after 1995"

EE 33: Annual rate for fixed life intangible property, or

"Calculating the yearly rate for property with a fixed legal lifespan"

Part ETiming and quantifying rules
Depreciation

EE 32Election in relation to certain depreciable property acquired on or after 1 April 2005

This section applies when a person acquired an item of depreciable property that is not a building—
on or after 1 April 2005; and
before the commencement of the person’s income year corresponding to the 2006–07 tax year.

The person may choose to calculate the depreciation loss for the item of depreciable property for income years corresponding to the 2005–06 tax year and later tax years in accordance with the economic rate determined for the kind of item under section EZ 23 (Economic rate for plant or equipment acquired before 1 April 2005 and buildings acquired before 19 May 2005).
The person must make an election under subsection (2) in the person’s return of income for the 2005–06 tax year.

Compare

2004 No 35 s EE 26B

Notes

Section EE 32(2): amended (with effect on 1 April 2008 and applying for the 2008–09 and later income years), on 24 February 2016, by section 120(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
Section EE 32 list of defined terms building: inserted (with effect on 30 July 2009), on 28 May 2010, by section 84 of the Taxation (Budget Measures) Act 2010 (2010 No 27).
Section EE 32 list of defined terms economic depreciation rate: repealed (with effect on 1 April 2008), on 24 February 2016, by section 120(2) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
Section EE 32 list of defined terms economic rate: inserted (with effect on 1 April 2008), on 24 February 2016, by section 120(2) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).