Section EE 63 — Income Tax Act 2007: Meaning of estimated useful life

EE 63 Meaning of estimated useful life Meaning for item of depreciable property, except for copyright in sound recording (1) Estimated useful life , for an item of depreciable property, other than a copyright in a sound recording, means the period over which the item might reasonably be expected to be useful in deriving assessable income or carrying on a business for the purpose of deriving assessable income, taking into account— (a) the passage of time, likely wear and tear, exhaustion, and obsolescence; and (b) an assumption of normal and reasonable maintenance. Meaning for copyright in sound recording (2) Estimated useful life , for a copyright in a sound recording, means the period from the time at which the copyright might reasonably be expected to be first useful in deriving assessable income until the end of the income year in which it might reasonably be expected that 90% of all the income that will be derived from it has been derived. Defined in this Act: assessable income , business , depreciable property , estimated useful life , income year , sound recording , Compare: 2004 No 35 s EE 54