Section DB 28 — Income Tax Act 2007: Amount from land affected by change and not already in income

DB 28 Amount from land affected by change and not already in income When this section applies (1) This section applies when a person derives income under section CB 14 (Disposal: amount from land affected by change and not already in income) that is not their income under any other provision of this Act. Deduction (2) The person is allowed— (a) a deduction allowed under any other provision of this Act; and (b) a deduction to the extent described in subsection (3). Calculation of deduction (3) The maximum amount of the deduction is the greater of $1,000 and an amount calculated using the formula in subsection (4). However, the amount must not be more than the profit obtained from the disposal of the land. Formula (4) The formula is— percentage of profit × years. Definition of items in formula (5) In the formula,— (a) percentage of profit is 10% of the profit on the disposal of the land: (b) years is the number, up to and including 10, of consecutive years between the date on which the person acquired the land and the date on which they disposed of it, with the first year starting on the date on which the person acquired the land. Meaning of profit (6) In this section, profit means the excess of the amount derived over the cost of the land. Link with subpart DA (7) This section supplements the general permission. The general limitations still apply. Defined in this Act: amount , deduction , general limitation , general permission , income , land , profit , supplement , year , Compare: 2004 No 35 s DB 21