Section DB 30 — Income Tax Act 2007: Cost of non-specified mineral

DB 30 Cost of non-specified mineral When this section applies (1) This section applies when— (a) an amount of cost of a mineral is treated by a person under generally accepted accounting practice as a cost of the mineral for the person and reported accordingly for financial reporting purposes; and (b) the mineral is not a specified mineral; and (c) no other provision of this Act allows the person a deduction for the amount; and (d) an amount derived by the person from disposing of the mineral would be income of the person under section CB 29 (Disposal of minerals). Deduction (2) The person is allowed a deduction for the amount. Timing of deduction: trading stock (3) If the amount is a cost of trading stock, the deduction is allocated to the income year in which the mineral first becomes trading stock of the person. Timing of deduction: not trading stock (4) If the amount is not a cost of trading stock, the deduction is allocated by section EA 2 (Other revenue account property). Link with subpart DA (5) This section supplements the general permission and overrides the capital limitation. The other general limitations still apply. Defined in this Act: amount , capital limitation , deduction , dispose , general limitation , general permission , generally accepted accounting practice , income , income year , mineral , specified mineral , trading stock Compare: 2004 No 35 s DB 22