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Income Tax Act 2007

Timing and quantifying rules - Terminating provisions - Entry to new life insurance regime: transitional and miscellaneous provisions

EZ 72: Item treated as available for use if access restricted due to Canterbury earthquake

You could also call this:

“Depreciation allowed for items inaccessible due to Canterbury earthquake restrictions”

If you have an item that can be depreciated for tax purposes, there’s a special rule for when you can’t access it because of restrictions related to the Canterbury earthquake. You can still treat the item as if it’s available for you to use if three conditions are met:

  1. You were using the item, or it was available for you to use, just before the restriction was put in place.

  2. You would be using the item, or it would be available for you to use, if the restriction wasn’t there.

  3. The tax year you’re dealing with is the 2023-24 tax year or any earlier tax year.

This rule refers to the Canterbury earthquake as defined in section 4 of the Canterbury Earthquake Recovery Act 2011. It helps you continue to claim depreciation on your property even if you can’t physically access it due to earthquake-related restrictions.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6820050.

Topics:
Money and consumer rights > Taxes
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EZ 71: Insurance for Canterbury earthquake damage of property: limit on depreciation recovery income, or

“Limits on taxable income from insurance payouts for Canterbury earthquake-damaged property”

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EZ 73: Insurance for Canterbury earthquake damage causing disposal: optional timing rule for income, deductions, or

“Optional timing for reporting income and deductions from Canterbury earthquake-damaged property disposal”

Part E Timing and quantifying rules
Terminating provisions: Entry to new life insurance regime: transitional and miscellaneous provisions

EZ 72Item treated as available for use if access restricted due to Canterbury earthquake

  1. An item of depreciable property is treated for an income year as being available for use while access to the item is affected by a restriction imposed due to the effects of a Canterbury earthquake (as defined in section 4 of the Canterbury Earthquake Recovery Act 2011), if—

  2. the item was used or available for use immediately before the restriction was imposed; and
    1. the item would be used or available for use in the absence of the restriction; and
      1. the income year is the 2023–24 or an earlier income year.

        Notes
        • Section EZ 72: inserted, on (applying for the 2016–17 and later income years), by section 68(1) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
        • Section EZ 72(c): amended (with effect on 1 April 2016), on , by section 188 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).