Section EE 22 — Income Tax Act 2007: Cases affecting pool

EE 22 Cases affecting pool Acquired item included (1) If a person chooses in an income year to include in a pool an item of poolable property that they acquire in the income year, the pool’s adjusted tax value is increased by the item’s cost. Separately depreciated item included (2) If a person chooses in an income year to include in a pool an item of poolable property that they depreciated separately in the previous income year,— (a) the pool’s adjusted tax value is increased by the item’s adjusted tax value on the date it is included in the pool; and (b) the item’s adjusted tax value at the end of the previous income year is included in starting adjusted tax value in section EE 21(5) . Insurance or compensation for damage to item (2B) If a person in an income year derives an amount of insurance, indemnity, or compensation (the compensation amount ) for damage to an item included in a pool at the end of the income year and the compensation amount exceeds the expenditure or loss that the person incurs because of the damage, the excess is subtracted from the adjusted tax value of the pool. Item disposed of (3) If a person disposes of an item included in a pool, and derives an amount of consideration from the disposal, or derives an amount of insurance, indemnity, or compensation to which subsection (2B) does not apply for damage to the item occurring before the disposal, any excess of the amount derived over the expenditure or loss incurred in deriving the amount is subtracted from the adjusted tax value of the pool in which the item was included on the date of the disposal. All items disposed of (4) If, on the last day of an income year, the adjusted tax value of a person’s pool is positive but the person has disposed of all items that were in the pool,— (a) the amount of depreciation loss that the person has for the pool for the income year is the pool’s adjusted tax value; and (b) on the first day of the following income year, the pool’s adjusted tax value is zero. Negative adjusted tax value (5) If, on the last day of an income year, the adjusted tax value of a person’s pool is negative,— (a) the amount by which the adjusted tax value is negative is an amount of depreciation recovery income of the person derived in the income year; and (b) on the first day of the following income year the pool’s adjusted tax value is zero. Relationship with section EZ 10 (6) Section EZ 10 (Pool items accounted for by globo method for 1992–93 income year) limits the amount of income arising under subsection (5)(a) in the circumstances described in the section. Defined in this Act: acquire , adjusted tax value , amount , depreciation loss , depreciation recovery income , dispose , income , income year , pool , poolable property , Compare: 2004 No 35 s EE 22 Section EE 22(2B) heading: inserted (with effect on 4 September 2010), on 2 November 2012, by section 35(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88). Section EE 22(2B): inserted (with effect on 4 September 2010), on 2 November 2012, by section 35(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88). Section EE 22(3): amended (with effect on 4 September 2010), on 2 November 2012, by section 35(2) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).