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EZ 23G: Insurance for repairs of Canterbury earthquake damage: optional timing rule for income, deductions
or “Removed rule about timing of insurance and repair costs for Canterbury earthquake damage”
You could also call this:

“What counts as a new asset for tax purposes”

A new asset is something you own that meets certain rules. You must have gotten it between 16 December 1991 and 31 March 1993, or between 1 April 1993 and 31 March 1994 if you had agreed to buy it earlier. It can also be something you had as stock before 16 December 1991 but started using as a capital item between 16 December 1991 and 31 March 1993.

You need to have used this item before 1 April 1994. No one else should have owned, used, or planned to use it before you got it. It also shouldn’t have been something that could be depreciated under the old tax law before you got it.

If you built the item yourself, it’s not a new asset if you started building it before 16 December 1991, or if you agreed to build it before that date. It’s also not a new asset if you didn’t finish building it before 1 April 1994, or if you didn’t use it before that date.

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Next up: EZ 25: Meaning of New Zealand-new asset

or “What counts as a 'New Zealand-new asset' for tax purposes”
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Part E Timing and quantifying rules
Terminating provisions: Definitions

EZ 24Meaning of new asset

  1. New asset means an item of property that a person owns to which subsections (2) to (4) apply and to which subsection (5) does not apply.

  2. The item is—

  3. acquired by the person in the period starting on 16 December 1991 and ending with the close of 31 March 1993, other than under a binding contract that they entered into before 16 December 1991; or
    1. acquired by the person in the period starting on 1 April 1993 and ending with the close of 31 March 1994, under a binding contract that they entered into in the period starting on 16 December 1991 and ending with the close of 31 March 1993; or
      1. one to which all the following apply:
        1. it was acquired by the person before 16 December 1991 as trading stock; and
          1. it was used by the person as a capital item for the first time in the period starting on 16 December 1991 and ending with the close of 31 March 1993; and
            1. it qualified for a deduction for depreciation under section 108 of the Income Tax Act 1976 in the period starting on 16 December 1991 and ending with the close of 31 March 1993.

            2. The item is used by the person before 1 April 1994.

            3. The item is—

            4. not acquired by any other person before the date on which the person acquired it; and
              1. not used by any other person before the date on which the person acquired it; and
                1. not held for use by any other person before the date on which the person acquired it; and
                  1. not an item or part of an item that qualified for a deduction for depreciation under the Income Tax Act 1976 for a period before the date on which the person acquired it.

                    1. A constructed item that a person owns is not a new asset if—

                    2. its construction started before 16 December 1991 (but this paragraph does not apply to the extent to which the item is trading stock to which subsection (2)(c) applies); or
                      1. its construction started on or after 16 December 1991 under a binding contract that the person entered into before 16 December 1991; or
                        1. its construction was not completed before 1 April 1994; or
                          1. the item was not first used by the person before 1 April 1994.

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