Section EJ 10 — Income Tax Act 2007: Personal property lease payments

EJ 10 Personal property lease payments What this section applies to (1) This section applies to a lease that— (a) is of a personal property lease asset; and (b) is not a finance lease; and (c) is not a specified lease. Payments (2) Personal property lease payments are treated as being paid for the term of the lease. Formula (3) The expenditure that the lessee incurs is allocated to income years using the formula— part of term × total of payments. term of the lease Definition of items in formula (4) In the formula,— (a) part of term is the part of the term of the lease that falls within the income year: (b) term of the lease has the meaning given in section YA 1 (Definitions): (c) total of payments is the total amount of the personal property lease payments. Defined in this Act: finance lease , income year , lease , lessee , pay , personal property lease asset , personal property lease payment , specified lease , term of the lease , Compare: 2004 No 35 s EJ 9