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New Zealand law explained for everyone

Income Tax Act 2007

Timing and quantifying rules - Depreciation

EE 46: Items for purposes of section EE 44

You could also call this:

“List of property types eligible for depreciation claims when sold or disposed of”

You own some property that can lose value over time, and the law lets you claim some money back for this loss in value. This property is called ‘depreciable property’. The law talks about what happens when you sell this property or something else happens to it.

The property this law talks about includes things you’ve already claimed money back for because they lost value. It also includes some computer programs bought before 1 April 1993.

But there are some types of property this law doesn’t apply to. It doesn’t apply to property that’s part of a group (called a ‘pool’). It doesn’t apply to things used in oil and gas work. It doesn’t apply to most things you can’t touch (like copyrights), except for computer programs. And it doesn’t apply to some improvements made to land that you couldn’t claim money back for under an old law from 1976.

If you want to know more about claiming money back for property losing value, you can look at section EE 33. For more details about what happens when you sell your property or something else happens to it, you can check sections EE 48 to EE 52.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1514656.

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EE 47: Events for purposes of section EE 44, or

“Changes affecting tax claims for property wear and tear”

Part E Timing and quantifying rules
Depreciation

EE 46Items for purposes of section EE 44

  1. For the purposes of section EE 44, an item of property to which sections EE 48 to EE 52 apply is an item of depreciable property that a person owns, including—

  2. an item for which the person has been allowed a deduction for an amount of depreciation loss they have had under section EE 33; and
    1. an item to which section CZ 11 (Recovery of deductions for software acquired before 1 April 1993) applies.

      1. Sections EE 48 to EE 52 do not apply to—

      2. an item of property that, on the date on which the disposal or the event occurs, is accounted for in a pool; or
        1. an item of petroleum-related depreciable property; or
          1. an item of intangible property that is excluded depreciable property, other than software; or
            1. a land improvement that is excluded depreciable property of a kind for which no deduction for depreciation was allowed under section 108 of the Income Tax Act 1976.

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