Section EZ 14 — Income Tax Act 2007: Pre-1993 depreciation rate

EZ 14 Pre-1993 depreciation rate Scope of election (1) A person may choose the pre-1993 depreciation rate for all items, or any item, that they acquire before the end of their 1994–95 income year excluding buildings that have an economic rate or provisional rate of more than 0% due to an estimated useful life of 50 years or more. How election made (2) The election is made by applying the pre-1993 depreciation rate for the item to the item in the person’s return of income for the income year for which the election is made. Election unchangeable (3) The election must not be changed for the income year for which it is made. Moving from diminishing value to straight-line and vice versa (4) A person who chooses the pre-1993 depreciation rate has the following choices: (a) if the rate is a diminishing value rate, the person may instead use the straight-line rate by— (i) rounding the diminishing value rate to the nearest rate specified in schedule 10 , column 1 (Straight-line equivalents of diminishing value rates of depreciation); and (ii) taking the equivalent straight-line rate specified in column 2 of the schedule; or (b) if the rate is a straight-line rate, the person may instead use the diminishing value rate by— (i) rounding the straight-line rate to the nearest rate specified in schedule 10 , column 2; and (ii) taking the equivalent diminishing value rate specified in column 1 of the schedule. Pre-1993 depreciation rate (5) The pre-1993 depreciation rate is the rate calculated using the formula— section 108 rate + section 108A rate + section 113A rate. Definition of items in formula (6) The items in the formula are defined in subsections (7) to (9). Section 108 rate (7) Section 108 rate is the rate of depreciation that the Commissioner allowed persons with a standard balance date to use for the 1992–93 tax year to calculate a deduction for depreciation under section 108 of the Income Tax Act 1976, as in force for the 1992–93 tax year, for property of the same kind as the item. Section 108A rate (8) Section 108A rate is the rate of additional deduction under section 108A of the Income Tax Act 1976, as in force for the 1992–93 tax year, for which the item was eligible for the 1992–93 tax year. Section 113A rate (9) Section 113A rate is the rate of supplementary deduction under section 113A of the Income Tax Act 1976 for which the item was eligible for the 1992–93 tax year. Defined in this Act: building , Commissioner , diminishing value rate , economic rate , estimated useful life , income year , provisional rate , return of income , standard balance date , straight-line rate , tax year , Compare: 2004 No 35 s EZ 13 Section EZ 14(1): amended, on 1 April 2011 (applying for the 2011–12 and later income years), by section 86(1) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section EZ 14 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 EZ 14 list of defined terms economic rate : inserted, on 1 April 2011 (applying for the 2011–12 and later income years), by section 86(2) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section EZ 14 list of defined terms estimated useful life : inserted, on 1 April 2011 (applying for the 2011–12 and later income years), by section 86(2) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section EZ 14 list of defined terms provisional rate : inserted, on 1 April 2011 (applying for the 2011–12 and later income years), by section 86(2) of the Taxation (Budget Measures) Act 2010 (2010 No 27).