Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Recharacterisation of certain transactions - Tax relief for emergencies - Replacements: revenue account property

FP 7: Cost of replacement property for section DB 23

You could also call this:

“Working out what you paid for a new property to replace an old one”

When you replace affected revenue property with new property, you need to work out how much you spent on the new property. To do this, you use the cost of the new property and subtract the replacement cost adjustment, which is determined under section FP 6(3) or (5). This helps you find out how much you actually spent on the replacement property for the purposes of section DB 23.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1432179.

Previous

FP 6: Meaning of suspended recovery income for affected revenue property, or

"What suspended recovery income means for property that's been affected and gets compensation."

Next

FP 8: Replacement property for depreciable property affected by emergency events, or

"Help with tax when your property is damaged in an emergency"

Part F Recharacterisation of certain transactions
Tax relief for emergencies: Replacements: revenue account property

FP 7Cost of replacement property for section DB 23

  1. For the purposes of section DB 23 (Cost of revenue account property) and determining the amount of a person’s expenditure incurred as the cost of replacement property that a person acquires to replace affected revenue property, the person’s replacement cost is reduced by the amount of the replacement cost adjustment determined under section FP 6(3) or (5), as applicable.

Notes
  • Section FP 7: inserted, on , by section 65 of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).