Section EE 47 — Income Tax Act 2007: Events for purposes of section EE 44

EE 47 Events for purposes of section EE 44 Events to which sections EE 48 to EE 52 apply (1) For the purposes of section EE 44 , this section describes the events to which sections EE 48 to EE 52 apply. Change of use or location of use (2) The first event is the change of use, or change of location of use, of an item of property, as a result of which a person is denied a deduction for an amount of depreciation loss for the item for the next income year. The event is treated as occurring on the first day of the next income year, and includes a change in use of an item for the purposes of the definition of commercial fit-out and a change in the status of a building related to an item for the purposes of that definition. Loss or theft (3) The second event is the loss or theft of an item of property, if the item is not recovered in the income year in which the loss or theft occurs. Irreparable damage or damage rendering building or grandparented structure useless (4) The third event is— (a) the irreparable damage of an item of property that is not a building or grandparented structure; or (b) the damage of an item of property that is a building or grandparented structure, or of the neighbourhood of the building or grandparented structure, causing the building or grandparented structure to be— (i) useless for the purpose of deriving income; and (ii) demolished or abandoned for later demolition. Repossession (5) The fourth event is the seller’s repossession of an item of property to which section EE 3 applies because the buyer wholly or partly fails to pay the consideration. The event is treated as occurring on the date on which the item is repossessed. Unused geothermal well brought into use (6) The fifth event is, for a person’s geothermal well that is unavailable for use under section EE 6(4) because the geothermal energy proving period has ended, is when the person starts to— (a) use the well in deriving assessable income or carrying on a business for the purpose of deriving assessable income: (b) have the well available for use in deriving assessable income or carrying on a business for the purpose of deriving assessable income. Statutory acquisition (7) The sixth event is the acquisition of an item of property by a person acting under statutory authority. Cessation of ownership under section EE 4 or EE 5 (8) The seventh event is the cessation of ownership of a fixture or improvement— (a) that a lessee is treated as having under section EE 4(2) ; or (b) that a person is treated as having under section EE 5(3) . Cessation of rights in intangible property (9) The eighth event is an occurrence that has the effect that the owner of an item of intangible property is no longer able, and will never be able, to exercise the rights that constitute or are part of the item. Item leaving New Zealand permanently (10) The ninth event is described in section EZ 21(2) ( Sections EE 45 and EE 47 : permanent removal: allowance before 1 April 1995). Defined in this Act: amount , assessable income , business , deduction , depreciation loss , geothermal energy proving period , geothermal well , improvement , income year , lessee , New Zealand , own , pay , property , Compare: 2004 No 35 s EE 40 Section EE 47(2): amended, on 1 April 2011 (applying for the 2011–12 and later income years), by section 53(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130). Section EE 47(4) heading: substituted (with effect on 4 September 2010), on 29 August 2011, by section 26 of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63). Section EE 47(4): substituted (with effect on 4 September 2010), on 29 August 2011, by section 26 of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).