Section DB 26 — Income Tax Act 2007: Amount from profit-making undertaking or scheme and not already in income

DB 26 Amount from profit-making undertaking or scheme and not already in income When this section applies (1) This section applies when a person derives income under section CB 3 (Profit-making undertaking or scheme) that is not their income under any other provision of this Act. Deduction (2) The person is allowed a deduction for the value of the property, as determined under subsection (3). Determining amount of deduction (3) For the purpose of determining the amount of the deduction, the person is treated as— (a) having disposed of the property to an unrelated third party immediately before the start of the undertaking or scheme; and (b) having reacquired the property immediately after the start of the undertaking or scheme at the market value of the property at the time. Link with subpart DA (4) This section supplements the general permission. The general limitations still apply. Defined in this Act: amount , deduction , general limitation , general permission , income , supplement , Compare: 2004 No 35 s DB 19