Income Tax Act 2007

Timing and quantifying rules - Terminating provisions

EZ 6: Reduction: broodmare previously used for breeding in New Zealand: pre-1 August 2006

You could also call this:

"Reducing the value of a broodmare used for breeding in New Zealand before 1 August 2006"

You have a broodmare used for breeding in New Zealand. This rule applies if you started using the broodmare before 1 August 2006. You calculate the reduction in the broodmare's value using a formula. You use the cost price of the broodmare and its age. The age is either the actual age or a set age, depending on how old the broodmare is. The formula is different depending on which rule applies to you. The rules are in section EC 39 and section EC 40. These rules are about bloodstock. You do not use this formula if section EC 41 or EZ 5 applies to you. You calculate the reduction using the cost price divided by 15 minus the age of the broodmare. Or you use the cost price divided by 11 minus the age of the broodmare. The age of the broodmare is either its actual age or a set age, like 12 years or 8 years. You can find more information about the rules in section EC 39 and section EC 40. These rules are about bloodstock and how to calculate the reduction in value. You can also look at 2004 No 35 s EZ 4C for more information.

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EZ 5: Reduction: bloodstock not previously used for breeding in New Zealand: pre-1 August 2006, or

"Tax rules for bloodstock not used for breeding in New Zealand before 1 August 2006"

EZ 6B: National minimum price threshold for 2019 calendar year, or

"Minimum prices for buying different types of young racehorses in 2019"

Part ETiming and quantifying rules
Terminating provisions

EZ 6Reduction: broodmare previously used for breeding in New Zealand: pre-1 August 2006

This section applies to a broodmare that section EC 39(1) or (2) (First income year in breeding business) applies to,—
before 1 August 2006; or
for an income year ending on or after 1 August 2006, if a requirement of paragraphs (a) to (c) of section EC 39(1) or (2) is first met before 1 August 2006.

For the purposes of sections EC 39 and EC 40 (which relate to bloodstock), the reduction applying to the value of a broodmare to which section EC 39(1) applies and sections EC 41 (Reduction: bloodstock not previously used for breeding in New Zealand) and EZ 5 do not apply is calculated using the formula—
$cost price of broodmare ÷ (15 − age of broodmare).$

Where:
In the formula in subsection (2), age of broodmare is—
12 years of age; or
the actual age in years, if the broodmare is 11 years of age or less at the end of the income year.

For the purposes of sections EC 39 and EC 40, the reduction applying to the value of a broodmare to which section EC 39(2) applies and sections EC 41 and EZ 5 do not apply is calculated using the formula—
$cost price of broodmare ÷ (11 − age of broodmare).$

Where:
In the formula in subsection (4), age of broodmare is—
8 years of age; or
the actual age in years, if the broodmare is 7 years of age or less at the end of the income year.

Compare

2004 No 35 s EZ 4C