Section EE 21 — Income Tax Act 2007: Pool method: calculating amount of depreciation loss

EE 21 Pool method: calculating amount of depreciation loss Amount of depreciation loss subtracted from pool’s value (1) The amount of depreciation loss that a person has for an income year for a pool of depreciable property is— (a) first, calculated under subsection (2); and (b) second, subtracted from the pool’s adjusted tax value at the end of the income year. Amount (2) The amount of depreciation loss is calculated using the formula— rate × starting adjusted tax value + ending adjusted tax value × months 2 12. Definition of items in formula (3) The items in the formula are defined in subsections (4) to (8). Rate (4) Rate is the diminishing value rate. It is 1 of the following: (a) if the same rate applies to all items depreciated in the pool in the income year, that rate; or (b) if different rates apply to items depreciated in the pool in the income year,— (i) the lower of the rates, if there are 2 items in the pool; or (ii) the lowest of the rates, if there are 3 or more items in the pool. Starting adjusted tax value (5) Starting adjusted tax value is— (a) the pool's adjusted tax value at the start of the income year, increased as applicable by the amount referred to in section EE 22(2)(b) ; or (b) zero, if the pool did not exist at the start of the income year. Ending adjusted tax value (6) Ending adjusted tax value is the pool's adjusted tax value at the end of the income year before the deduction of an amount of depreciation loss for the pool for the income year. The value is, as applicable,— (a) increased by the amounts referred to in section EE 22(1) and (2)(a): (b) decreased by the amount referred to in section EE 22(3) . Months (7) Months , for a person, is the number of whole or part months in their income year, and the number may be more or less than 12. Months: income year of longer than normal length [Repealed] (8) [Repealed] Defined in this Act: adjusted tax value , amount , deduction , depreciable property , depreciation loss , diminishing value rate , income year , own , pool , Compare: 2004 No 35 s EE 21 Section EE 21(5) heading: substituted (with effect on 1 April 2008), on 6 October 2009, by section 117(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section EE 21(5): substituted (with effect on 1 April 2008), on 6 October 2009, by section 117(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section EE 21(6) heading: substituted (with effect on 1 April 2008), on 6 October 2009, by section 117(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section EE 21(6): substituted (with effect on 1 April 2008), on 6 October 2009, by section 117(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section EE 21(7) heading: substituted (with effect on 1 April 2008), on 6 October 2009, by section 117(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section EE 21(7): substituted (with effect on 1 April 2008), on 6 October 2009, by section 117(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section EE 21(8) heading: repealed (with effect on 1 April 2008), on 6 October 2009, by section 117(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section EE 21(8): repealed (with effect on 1 April 2008), on 6 October 2009, by section 117(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).