Section EC 42 — Income Tax Act 2007: Reduction: bloodstock previously used for breeding in New Zealand

EC 42 Reduction: bloodstock previously used for breeding in New Zealand Stallion (1) For the purposes of sections EC 39 and EC 40 , the reduction applying to the value of a stallion to which section EC 41 does not apply is 20% of its cost price. Broodmare when first used on or after 1 April 2001 (2) For the purposes of sections EC 39 and EC 40 , the reduction applying to the value of a broodmare to which section EC 39(2) applies and section EC 41 does not apply is calculated using the formula— cost price of broodmare 9 − age of broodmare. Definition of item in formula (3) In the formula, age of broodmare is— (a) 8 years of age; or (b) the actual age in years, for a broodmare that is 7 years of age or less at the end of the income year. Relationship with section EZ 6 (4) This section is overridden by section EZ 6 (Reduction: broodmare previously used for breeding in New Zealand: pre-1 August 2006). Defined in this Act: bloodstock , broodmare , cost price , income year , stallion , year , Compare: 2004 No 35 s EC 42