Section EE 9 — Income Tax Act 2007: Description of elements of calculation

EE 9 Description of elements of calculation Depreciation methods (1) Sections EE 12 to EE 24 deal with the methods of calculating an amount of depreciation loss. The methods are— (a) the straight-line method, which is dealt with in sections EE 13 to EE 19 ; and (b) the diminishing value method, which is also dealt with in sections EE 13 to EE 19 ; and (c) the pool method, which is dealt with in sections EE 20 to EE 24 . Depreciation rates (2) Sections EE 26 to EE 36 deal with the rates of depreciation. The rates are— (a) the economic rate, which is dealt with in section EE 26 ; and (b) the annual rate, which is dealt with in sections EE 31 , EE 33 , and EE 34 ; and (c) a special rate or a provisional rate, both of which are dealt with in sections EE 35 and EE 36 . Improvements, low value items, and items no longer used (3) Sections EE 37 to EE 39 deal with the cases of— (a) an improvement made to an item of depreciable property; and (b) an item of depreciable property that is of low value; and (c) an item of depreciable property that is no longer used. Transfers (4) Sections EE 40 to EE 43 deal with the transfer of items of depreciable property in certain amalgamations and between associated persons. Disposals and similar events (5) Sections EE 44 to EE 52 deal with disposals of property and events that involve property and are similar to disposal. Interpretation provisions (6) Sections EE 54 to EE 67 deal with the following interpretation matters: (a) section EE 54 deals with the effect of goods and services tax (GST) on cost; and (b) sections EE 55 to EE 60 deal with the meaning of adjusted tax value ; and (c) sections EE 61 to EE 67 contain definitions. Relationship with sections EZ 9 to EZ 28 (7) Sections EZ 9 to EZ 28 (which relate to depreciation) deal with items acquired in periods before 24 September 1997. Defined in this Act: adjusted tax value , amount , annual rate , associated person , depreciable property , depreciation loss , depreciation method , diminishing value method , dispose , economic rate , GST , improvement , pool method , property , provisional rate , special rate , straight-line method , Compare: 2004 No 35 s EE 9