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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"

Illustration for Income Tax Act 2007

You have a broodmare used for breeding in New Zealand before 1 August 2006. The law applies to you if you meet certain conditions in section EC 39(1) or (2). You must calculate the reduction in the broodmare's value using a formula. You use the formula to work out the reduction. The formula is the cost price of the broodmare divided by 15 minus the age of the broodmare. The age of the broodmare is either 12 years or its actual age if it is 11 years or less. If section EC 39(2) applies to you, you use a different formula. The formula is the cost price of the broodmare divided by 11 minus the age of the broodmare. The age of the broodmare is either 8 years or its actual age if it is 7 years or less. You can find more information about bloodstock in sections EC 39 and EC 40. You can also look at sections EC 41 and EZ 5 for more details. The law has rules about how to calculate the reduction in the broodmare's value.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1515999.

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

"Reducing tax on horses not used for breeding in New Zealand before 2006"

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

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Part ETiming and quantifying rules
Terminating provisions

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

  1. This section applies to a broodmare that section EC 39(1) or (2) (First income year in breeding business) applies to,—

  2. before 1 August 2006; or
    1. 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.

      1. 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
          1. the actual age in years, if the broodmare is 11 years of age or less at the end of the income year.

            1. 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
                1. the actual age in years, if the broodmare is 7 years of age or less at the end of the income year.

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