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Income Tax Act 2007

Timing and quantifying rules - Depreciation

EE 44: Application of sections EE 48 to EE 51

You could also call this:

“When these rules apply to valuable items you own”

This part of the law explains when sections EE 48 to EE 51 apply. These sections are about what happens when you get money or something else of value for an item you own.

The sections apply when you get something valuable for an item, and:

  1. The valuable thing you get is described in section EE 45, and
  2. Either the item is described in section EE 46, or something happened to the item as described in section EE 47.

However, these sections don’t apply in some special cases:

  1. If you replace an intangible item with a similar one
  2. If your patent application is approved and you get a patent
  3. If your design registration application is approved and you get a design registration
  4. If your geothermal well can’t be used anymore because the testing period has ended
  5. If you get insurance money or compensation for an item that was affected by the Canterbury earthquakes, as described in section EZ 23B.

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 It might be out of date or be missing some parts.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=DLM1514649.

Topics:
Money and consumer rights > Taxes
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EE 43: Transfer of depreciable intangible property on or after 1 July 1997, or

“Rules for receiving non-depreciable intangible property from a related party”

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EE 45: Consideration for purposes of section EE 44, or

“How to calculate the value of business assets you sell or lose”

Part E Timing and quantifying rules
Depreciation

EE 44Application of sections EE 48 to EE 51

  1. Sections EE 48 to EE 51 apply when a person has consideration from the disposal of an item or from an event involving an item, if—

  2. the consideration is consideration of a kind described in section EE 45; and
    1. either—
      1. the item is an item of a kind described in section EE 46; or
        1. the event is an event of a kind described in section EE 47.

        2. Sections EE 48 to EE 51 do not apply when—

        3. a person disposes of an item of intangible property as part of an arrangement to replace it with an item of the same kind:
          1. a person’s patent application has concluded because a patent is granted to the person in relation to the application:
            1. a person’s design registration application has concluded because a design registration is granted to the person in relation to the application:
              1. a person’s geothermal well becomes unavailable for use under section EE 6(4) because the geothermal energy proving period has ended:
                1. a person receives, for an item of property, an amount of insurance or compensation to which section EZ 23B (Property acquired after depreciable property affected by Canterbury earthquakes) applies.

                  Compare
                  Notes
                  • Section EE 44 heading: amended, on , by section 61(1) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                  • Section EE 44(1): amended, on , by section 61(2) of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).
                  • Section EE 44(1): amended (with effect on 1 April 2008), on , by section 51 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
                  • Section EE 44(2): amended, on (with effect on 30 March 2017), by section 68 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
                  • Section EE 44(2)(bb): inserted (with effect on 1 April 2015 and applying for the 2015–16 and later income years), on , by section 124(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
                  • Section EE 44(2)(c): amended (with effect on 4 September 2010), on , by section 24 of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
                  • Section EE 44(2)(d): added (with effect on 4 September 2010), on , by section 24 of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
                  • Section EE 44(2)(d): amended (with effect on 4 September 2010), on , by section 80 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
                  • Section EE 44 list of defined terms design registration: inserted (with effect on 1 April 2015), on , by section 124(2) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
                  • Section EE 44 list of defined terms design registration application: inserted (with effect on 1 April 2015), on , by section 124(2) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).