Section EE 60 — Income Tax Act 2007: Total deductions in section EE 56

EE 60 Total deductions in section EE 56 Total deductions (1) Total deductions is the total, calculated as at a particular time, of— (a) the amount described in subsection (2); and (b) the amount described in subsection (3); and (c) the amount of a deduction under section EE 25 . First amount for purposes of subsection (1) (2) The amount is all amounts that 1 or more of the following provisions has required to be subtracted from the item’s adjusted tax value since the start of the 1993–94 income year: (a) section EE 52(2) : (b) section EE 44(2) of the Income Tax Act 2004: (c) section EG 19(5) of the Income Tax Act 1994: (d) the provision described in section EZ 22(4) (Base value and total deductions in section EE 56 : before 1 April 1995). Second amount for purposes of subsection (1) (3) The amount is all deductions for amounts of depreciation loss, calculated using the method described in subsection (4), that, in the period described in subsection (5),— (a) the person was allowed for the item and,— (i) if the item is a patent, for the patent application in relation to which the item was granted: (ii) if the item is a geothermal well that a person acquired under section EE 53(2) , for the well before the person acquired it under that section; or (b) the person would have been allowed if they had used the item wholly in deriving assessable income or carrying on a business for the purpose of deriving assessable income. Treatment of mothballed assets (3B) Subsection (3)(b) does not apply in relation to an amount of depreciation loss for an item that has been withdrawn from use in deriving assessable income or carrying on a business for the purpose of deriving assessable income. However, this exclusion does not apply to an amount of depreciation loss for which the person has a deduction under section EE 39 . Method (4) The method is— (a) the depreciation method that the person used in each relevant income year; or (b) the diminishing value method, if the person did not make deductions for amounts of depreciation loss for the item. Period (5) The period ends with the end of the income year before the income year in which the particular time occurs, and starts with,— (a) for an item to which section EE 57 applies,— (i) unless subparagraph (ii) or (iii) applies, the date on which the person acquired the item; or (ii) if the item is a geothermal well that a person acquired under section EE 53(2) , the earliest date on which the person acquired the well under section EE 6(4) or otherwise; or (iii) if the item is a patent and the person acquired the patent application in relation to which the patent was granted, the date on which the person acquired the patent application; or (b) for an item to which section EE 58 applies,— (i) unless subparagraph (ii) applies, the beginning of the month in which the person started to use the item, or to have it available for use for the purpose of deriving assessable income or carrying on a business for the purpose of deriving assessable income; or (ii) if the item is a patent and the person acquired the patent application in relation to which the patent was granted, the beginning of the month in which the person acquired the patent application; or (c) for an item to which section EE 59 applies, the date on which person A or the relevant associated person acquired the item; or (d) for an item to which section EZ 22(1) applies, to the item, the end of the 1992–93 income year. Defined in this Act: acquire , adjusted tax value , amount , assessable income , associated person , business , deduction , depreciation loss , depreciation method , diminishing value method , geothermal well , income year , Compare: 2004 No 35 s EE 51 Section EE 60(3B) heading: inserted (with effect on 1 April 2008), on 7 September 2010 (applying for the 2008–09 and later income years), by section 31(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109). Section EE 60(3B): inserted (with effect on 1 April 2008), on 7 September 2010 (applying for the 2008–09 and later income years), by section 31(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109). Section EE 60(5)(a)(ii): amended (with effect on 1 April 2008), on 2 November 2012, by section 37 of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).