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EE 54: Cost: GST
or “How GST affects the cost of depreciable property for tax purposes”
You could also call this:

“How to calculate the value of property for tax purposes”

When you talk about adjusted tax value, it means different things depending on what you’re looking at.

If you have a piece of property that loses value over time, you can work out its adjusted tax value using a special formula. You’ll find this formula in section EE 56.

If you have a group of similar items (called a pool), the adjusted tax value is the total of all the items’ values added together. You can find out how to calculate this in section EE 21.

It’s important to know that there’s a special rule for some types of leases. This rule can change how you work out the adjusted tax value. You can find this rule in section FA 11B(6).

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Next up: EE 56: Formula

or “How to calculate the adjusted tax value of an asset”
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Part E Timing and quantifying rules
Depreciation: Adjusted tax value

EE 55Meaning of adjusted tax value

  1. Adjusted tax value means,—

  2. for an item of depreciable property, the amount calculated using the formula in section EE 56:
    1. for a pool, the total adjusted tax value determined under section EE 21.

      1. Section FA 11B(6) (Adjustments for certain operating leases) overrides this section.

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      Notes
      • Section EE 55(1) heading: inserted (with effect on 1 April 2008), on (applying for the 2008–09 and later income years), by section 140(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).
      • Section EE 55(1)(b): substituted (with effect on 1 April 2008), on , by section 120(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
      • Section EE 55(2) heading: inserted, on , by section 357 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
      • Section EE 55(2): inserted, on , by section 357 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).