Section EE 49 — Income Tax Act 2007: Amount of depreciation recovery income when item partly used for business

EE 49 Amount of depreciation recovery income when item partly used for business Item to which this section applies (1) This section applies to an item of property that— (a) is an item to which this section applies, as described in section EE 46 ; and (b) is, at any time during the period the person owns it, dealt with in— (i) subpart DE (Motor vehicle expenditure); or (ii) any applicable paragraph in section EZ 11 (Amounts of depreciation recovery income and depreciation loss for part business use up to 2004–05 income year); or (iii) section EE 50 . Depreciation recovery income (2) If the consideration referred to in section EE 44 is less than or equal to the cost of the item to the person, the amount of depreciation recovery income that the person has is an amount calculated using the formula in subsection (3). Formula (3) The formula is— all deductions × amount of depreciation recovery income. (base value − adjusted tax value) Definition of items in formula (4) The items in the formula are defined in subsections (5) to (8). All deductions (5) All deductions is all amounts of depreciation loss for which the person has been allowed a deduction for the item in each of the income years in which the person has owned the item. Base value (6) Base value has the applicable one of the meanings in sections EE 57 to EE 59 . Adjusted tax value (7) Adjusted tax value is the item’s adjusted tax value on the date on which the disposal or the event occurs. Amount of depreciation recovery income (8) Amount of depreciation recovery income is the amount described in section EE 48(1) . Defined in this Act: adjusted tax value , amount , business , deduction , depreciation loss , depreciation recovery income , income year , own , property , Compare: 2004 No 35 s EE 42