Section DP 4 — Income Tax Act 2007: Improvement destroyed or made useless

DP 4 Improvement destroyed or made useless When this section applies (1) This section applies when, in an income year of a person,— (a) the person operates a forestry business on land, to which there has been made an improvement; and (b) the improvement is destroyed or irreparably damaged and made useless for the purpose of deriving income— (i) in an income year that corresponds to the 2005–06 tax year or a later tax year; and (ii) other than as a result of the action or failure to act of the person, an agent of the person, or an associated person; and (c) the person would be entitled for the income year to a deduction under section DP 3 for expenditure on the improvement if the improvement had not been destroyed or made useless. 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 , forestry business , general limitation , general permission , income , income year , tax year , Compare: 2004 No 35 s DP 3B Section DP 4 list of defined terms forestry business : inserted (with effect on 1 April 2008), on 7 December 2009, by section 126 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).