Section DO 11 — Income Tax Act 2007: Improvement destroyed or made useless

DO 11 Improvement destroyed or made useless When this section applies (1) This section applies when, in an income year of a person,— (a) the person owns land, or operates a business on land, to which an improvement described in schedule 20 (Expenditure on farming, horticultural, aquacultural, and forestry improvements) has been made for the purposes of the business; and (b) the improvement is destroyed or irreparably damaged and made useless for the purpose of deriving income; and (c) the person would be entitled for the income year to a deduction under section DO 4 or DO 5 for expenditure on the improvement if the improvement had not been destroyed or irreparably damaged and made useless; and (d) the damage occurs in an income year that corresponds to the 2005–06 tax year or a later tax year; and (e) the damage is caused other than as a result of the action or failure to act of the person, an agent of the person, or an associated person. Deduction: diminished value of expenditure (2) The person is allowed a deduction of the amount of the diminished value, for the income year, of the expenditure on the improvement. Link with subpart DA (3) This section overrides the general permission and the capital limitation. The other general limitations still apply. Defined in this Act: business , capital limitation , deduction , diminished value , general limitation , general permission , income , income year , tax year , Compare: 2004 No 35 s DO 5B