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Income Tax Act 2007

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

FP 9: Meaning of suspended recovery income for affected class

You could also call this:

“What 'suspended recovery income' means for a group of similar assets”

When you have an affected class, you need to work out your suspended recovery income. This is the amount by which your affected depreciation recovery income is more than your affected depreciation loss for that class. You calculate this for each class.

If you replace an item of your affected depreciable property, your suspended recovery income for that class goes down. The amount it goes down is the replacement reduction, which you calculate using section FP 10. This reduction is taken away from your suspended recovery income for the affected class.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1432184.

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FP 10: Replacement reduction for affected depreciable property, or

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

FP 9Meaning of suspended recovery income for affected class

  1. Subject to subsection (2), the amount of suspended recovery income a person has for an affected class is the amount by which the affected depreciation recovery income for that class exceeds the affected depreciation loss for that class.

  2. When the person replaces an item of their affected depreciable property, the amount of their suspended recovery income for the affected class under subsection (1) is reduced by the amount of the replacement reduction calculated under section FP 10.

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