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EZ 82: Transfers of deposits when adverse event income equalisation accounts abolished
or “Moving savings to new accounts when government closes special farm savings scheme”
You could also call this:

“How to handle taxes when you receive insurance for flood-damaged property”

This section applies to you if you own property that can lose value over time, and it was damaged by flooding in the North Island. If your insurance pays you for the damage, and you think it’s not worth fixing the item, this law tells you how to handle it for tax purposes.

When this happens, the law says you should treat it as if you sold the damaged item on the day of the flood. The “selling price” is the amount of money you get from your insurance. Then, you should act as if you bought the item back for free on the same day.

This rule applies even if the damage isn’t as bad as what’s described in another part of the tax law (section EE 47(4)). It also replaces the usual rule about how to deal with insurance payments for damaged property (section EE 52).

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Next up: EZ 84: Insurance for damage of property caused by North Island flooding events: limit on depreciation recovery income

or “Limits on taxable income from insurance for flood-damaged depreciable property”
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Part E Timing and quantifying rules
Terminating provisions: Entry to new life insurance regime: transitional and miscellaneous provisions

EZ 83Insurance for damage of property caused by North Island flooding events: treatment as disposal and reacquisition

  1. This section applies for a person and an item of depreciable property when—

  2. the item is damaged by a North Island flooding event; and
    1. the person is entitled to an amount of insurance or compensation for the damage to the item; and
      1. the person reasonably assesses that the item is uneconomic to repair; and
        1. the damage does not meet the requirements of section EE 47(4) (Events for purposes of section EE 44).

          1. The person is treated as, on the date of the relevant North Island flooding event,—

          2. disposing of the item for the amount of insurance or compensation; and
            1. reacquiring the item for zero consideration.

              1. This section overrides section EE 52 (Amount of depreciation recovery income when compensation received).

              Notes
              • Section EZ 83: inserted (with effect on 1 April 2022), on , by section 73(1) (and see section 73(2) for application) of the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Act 2024 (2024 No 11).