Section DZ 14 — Income Tax Act 2007: Deductions under specified leases

DZ 14 Deductions under specified leases When this section applies (1) This section applies for the purposes of sections FZ 2 and FZ 4 (which relate to specified leases). Lessor (2) In an income year in which a lessor leases a personal property lease asset to a lessee under a specified lease, the lessor is denied a deduction for an amount of depreciation loss for the asset. Lessee (3) A lessee under a specified lease is denied a deduction for expenditure incurred by them under the lease except to the extent to which the expenditure— (a) would be allowed as a deduction to the lessee under section BD 2 (Deductions); and (b) is no more than the sum of the amounts calculated under section FZ 3(2)(a) (Income of lessor under specified lease) for the initial period, if any, and each instalment period that ends in the income year. Link with subpart DA (4) This section overrides the general permission. Defined in this Act: amount , deduction , depreciation loss , general permission , income year , initial period , instalment period , lessee , lessor , personal property lease asset , specified lease , Compare: 2004 No 35 ss FC 6(4) , FC 8