Section EE 67 — Income Tax Act 2007: Other definitions

EE 67 Other definitions In this Act,— depreciation method means a method described in section EE 12 diminishing value method means the method of calculating an amount of depreciation loss for an item of depreciable property by subtracting, in each income year, a constant percentage of the item’s adjusted tax value from the item’s adjusted tax value diminishing value rate means the rate that a person using the diminishing value method applies to an item of depreciable property economic rate means the economic depreciation rate of an item of depreciable property, set under sections EE 27 to EE 30 estimated residual market value means, for an item of depreciable property, its market value at the end of its estimated useful life, estimated reasonably as at the date of acquisition and based on an assumption of normal and reasonable maintenance over its estimated useful life fixed life intangible property means property that— (a) is depreciable intangible property; and (b) has a legal life that could reasonably be expected, on the date of the property’s acquisition, to be the same length as the property’s remaining estimated useful life improvement means an alteration, extension, or repair of an item of depreciable property that increases its capital value international aircraft means a jet-engined aircraft that a person uses in an income year mainly in regular commercial service to transport passengers between New Zealand and any other place legal life, — (a) for an item to which paragraphs (b) and (c) do not apply, means the number of years, months, and days for which an owner’s interest in an item of intangible property exists under the contract or statute that creates the owner’s interest, assuming that the owner exercises any rights of renewal or extension that are either essentially unconditional or conditional on the payment of predetermined fees: (b) for an item that is a patent application or a patent, means the legal life under paragraph (a) that a patent would have if granted when a patent application is first lodged: (c) for an item that is plant variety rights, means the total of— (i) the legal life that the rights would have under paragraph (a); and (ii) the number of whole calendar months during which the person owns the plant variety rights application in relation to which the rights are granted petroleum-related depreciable property means depreciable property that is— (a) petroleum drilling rigs; or (b) support vessels for offshore petroleum drilling rigs; or (c) support vessels for offshore petroleum production platforms pool means items of depreciable property that a person chooses under section EE 12 to depreciate as a pool using the pool method pool method means the method of calculating an amount of depreciation loss set out in section EE 21 provisional rate means a provisional rate as described in section EE 35 special excluded depreciable property means all buildings that are items not specified in schedule 39 (Items for purposes of definition of special excluded depreciable property) special rate means a special rate as described in section EE 35 straight-line method means the method of calculating an amount of depreciation loss for an item of depreciable property by subtracting, in each income year, a constant percentage of the item’s cost, to its owner, from the item’s adjusted tax value straight-line rate means the rate that a person using the straight-line method applies to an item of depreciable property. Defined in this Act: acquire , adjusted tax value , amount , building , depreciable intangible property , depreciable property , depreciation loss , depreciation method , diminishing value method , diminishing value rate , economic rate , estimated residual market value , estimated useful life , fixed life intangible property , improvement , income year , international aircraft , legal life , New Zealand , own , pay , petroleum , petroleum-related depreciable property , plant variety rights , pool , pool method , property , provisional rate , special excluded depreciable property , special rate , straight-line method , straight-line rate , Compare: 2004 No 35 s EE 58 Section EE 67 definition special excluded depreciable property : inserted, on 1 April 2011 (applying for the 2011–12 and later income years), by section 83(1) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section EE 67 list of defined terms building : inserted (with effect on 30 July 2009), on 28 May 2010, by section 84 of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section EE 67 list of defined terms special excluded depreciable property : inserted, on 1 April 2011 (applying for the 2011–12 and later income years), by section 83(2) of the Taxation (Budget Measures) Act 2010 (2010 No 27).