Section EE 52 — Income Tax Act 2007: Amount of depreciation recovery income when compensation received

EE 52 Amount of depreciation recovery income when compensation received When this section applies (1) This section applies when a person receives insurance, indemnity, or compensation for an item of property to which this section applies, as described in section EE 46 , other than for an item that is lost, stolen, or irreparably damaged. Compensation subtracted (2) An amount must be subtracted from the item’s adjusted tax value. The amount is the amount by which the insurance, indemnity, or compensation that the person receives is more than the expenditure that the person incurs because of the event for which the person receives the insurance, indemnity, or compensation. Depreciation recovery income (3) If the item’s adjusted tax value becomes negative in an income year through the application of subsection (2), the negative amount is an amount of depreciation recovery income derived by the person in the income year. Defined in this Act: adjusted tax value , amount , depreciation recovery income , income year , property , Compare: 2004 No 35 s EE 44