Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Deductions - New investment assets

DI 2: When this subpart applies and does not apply

You could also call this:

"When you can and can't use this tax rule for new assets in New Zealand"

Illustration for Income Tax Act 2007

This subpart applies to you if you acquire an asset that is depreciable property and it first becomes available for use in New Zealand on or after 22 May 2025. The asset must not have been used in New Zealand before, except as trading stock, and you must choose to apply this subpart to it in your tax return. You can do this if you want to claim deductions for the asset.

This subpart also applies to you if you acquire an asset that is not depreciable property and you incur expenditure on or after 22 May 2025. Again, you must choose to apply this subpart to the asset in your tax return.

This subpart does not apply to you if you incurred expenditure before 22 May 2025 for an asset that is not depreciable property.

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 It might be out of date or be missing some parts.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=LMS1446075.

Topics:
Money and consumer rights > Taxes
Previous

DI 1: New investment assets, or

"Claiming tax deductions for new things you buy for your business or investments"

Next

DI 3: Meaning of new asset transferee, or

"Who is a new asset transferee, like a person or company getting assets from someone else?"

Part DDeductions
New investment assets

DI 2When this subpart applies and does not apply

  1. This subpart applies for a person,—

  2. for an asset acquired by them that is depreciable property, if—
    1. the asset first becomes available for use in New Zealand by the person on or after 22 May 2025, other than as trading stock; and
      1. the asset has never previously been used or available for use in New Zealand for any purpose, other than as trading stock; and
        1. the person has chosen to apply this subpart to the asset in a return of income for the income year:
        2. for an asset acquired by them that is not depreciable property, if—
          1. the person incurs the expenditure in relation to the asset on or after 22 May 2025; and
            1. the person has chosen to apply this subpart to the asset in a return of income for the income year.

            2. This subpart does not apply to expenditure the person incurs before 22 May 2025 in relation to an asset that is not depreciable property.

            Notes
            • Section DI 2: inserted (with effect on 22 May 2025), on , by section 5 of the Taxation (Budget Measures) Act 2025 (2025 No 26).