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Income Tax Act 2007

Timing and quantifying rules - Terminating provisions

EZ 17: Additional amount of depreciation loss: between 16 December 1991 and 1 April 1994

You could also call this:

“Extra wear and tear deduction for certain assets purchased or improved from late 1991 to early 1994”

You can get extra money back for wear and tear on certain things you bought or improved between 16 December 1991 and 1 April 1994. This applies when you spent money to buy or set up a special asset, or to make your own item better. The money you spent must be for long-term use, not including any GST you paid.

You can claim this extra amount on top of what you usually get back for wear and tear under other parts of the tax law. However, if you sell or get rid of the item, you might not be able to claim this extra amount anymore.

The extra amount you can claim each year is 25% of the smaller of two numbers. The first number is how much wear and tear you can usually claim for the item that year. The second number is how much wear and tear you would have claimed if the item was worth its special value.

This law helps you get more money back for the wear and tear on these special items you bought or improved during that time.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1516042.

Topics:
Money and consumer rights > Taxes
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EZ 16: Amount of depreciation loss for plant or machinery additional to section EZ 15 amount, or

“Extra wear and tear claim for heavily used business machinery”

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EZ 18: Section EZ 17 amount of depreciation loss when items transferred between companies in wholly-owned group before 1 April 1993, or

“Depreciation rules for items sold between related companies before April 1993”

Part E Timing and quantifying rules
Terminating provisions

EZ 17Additional amount of depreciation loss: between 16 December 1991 and 1 April 1994

  1. This section applies when a person incurs expenditure of the kind described in subsection (2) in—

  2. the acquisition or installation of a qualifying asset; or
    1. the making of a qualifying improvement to an item the person owns.

      1. The expenditure is expenditure of a capital nature, excluding any amount of input tax applying to the supply of the qualifying asset or qualifying improvement to the person.

      2. The person has an amount of depreciation loss for the asset or item under this section in addition to any amount of depreciation loss they have for it under subpart EE (Depreciation) and section EZ 16. This subsection is overridden by section EE 48(2) (Effect of disposal or event).

      3. The additional amount of depreciation loss for an income year is 25% of the lesser of—

      4. the amount of depreciation loss that the person has under subpart EE and section EZ 16 for the asset or item and for the income year; and
        1. the amount of depreciation loss that the person would have had under subpart EE and section EZ 16 for the asset or item and the income year had its value been equal to its qualifying capital value.

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