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Income Tax Act 2007

Recharacterisation of certain transactions - Tax relief for emergencies - When certain items of depreciable property damaged

FP 16: Item treated as available for use if access restricted due to emergency event

You could also call this:

“Items you can't use due to an emergency are still counted as available for use.”

If you have an item that can lose value over time, it is treated as available for use in the current year. This happens when you can’t access the item because of a restriction due to an emergency event. You must have been using the item or it was available for use before the restriction started. The item must also be something you would use or make available if there was no restriction.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1432203.

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FP 15: Insurance for damage of property caused by emergency event: limit on depreciation recovery income, or

"Limit on money back for damaged items after an emergency"

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FP 17: Insurance for emergency event damage causing disposal: optional timing rule for income, deductions, or

"Special rules for telling the government about money from emergency damage to things that lose value over time"

Part F Recharacterisation of certain transactions
Tax relief for emergencies: When certain items of depreciable property damaged

FP 16Item treated as available for use if access restricted due to emergency event

  1. An item of depreciable property is treated as being available for use in a current year when access to the item is affected by a restriction imposed due to the effects of an emergency event 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.

      Notes
      • Section FP 16: inserted, on , by section 65 of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).