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Income Tax Act 2007

Timing and quantifying rules - Depreciation - Adjusted tax value

EE 56: Formula

You could also call this:

“How to calculate the adjusted tax value of an asset”

You use a formula to work out the adjusted tax value. The formula is: base value minus total deductions.

The base value is explained in other parts of the law. You can find out what it means by looking at sections EE 57, EE 58, EE 59, and EZ 22(1).

The total deductions are explained in section EE 60.

This formula helps you figure out how much something is worth for tax purposes after you’ve taken away the money you’ve already claimed as a deduction.

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 It might be out of date or be missing some parts.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=DLM1514702.

Topics:
Money and consumer rights > Taxes
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EE 55: Meaning of adjusted tax value, or

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

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EE 57: Base value in section EE 56 when none of sections EE 58, EE 59, and EZ 22(1) applies, or

“How to calculate an item's base value when standard rules don't apply”

Part E Timing and quantifying rules
Depreciation: Adjusted tax value

EE 56Formula

  1. The formula referred to in section EE 55 is—

    base value − total deductions.

    Where:

    • In the formula,—

    • base value has the applicable meaning in sections EE 57, EE 58, EE 59, and EZ 22(1) (Base value and total deductions in section EE 56: before 1 April 1995):
      1. total deductions is defined in section EE 60.

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