Section EZ 23D — Income Tax Act 2007: Insurance for Canterbury earthquake damage of property: limit on depreciation recovery income

EZ 23D Insurance for Canterbury earthquake damage of property: limit on depreciation recovery income When this section applies (1) This section applies for a person and an item of depreciable property and an income year (the current year ) before the 2016–17 income year when— (a) the item is damaged by a Canterbury earthquake as that term is defined in section 4 of the Canterbury Earthquake Recovery Act 2011; and (b) the person is entitled to an amount of insurance or compensation for the damage to the item; and (c) the damage does not meet the requirements of section EE 47(4) (Events for purposes of section EE 44 ); and (d) section EZ 23C does not apply for the item. Limit on depreciation recovery income under section EE 52 (2) If the person would derive depreciation recovery income under section EE 52 (Amount of depreciation recovery income when compensation received) in an income year for the item in the absence of this section, the person derives in the income year an amount of depreciation recovery income equal to the lesser of— (a) the amount of depreciation recovery income under section EE 52 that the person would derive in the income year for the item in the absence of this section: (b) the total of the amounts of depreciation loss for which the person has been allowed deductions for the item. Relationship with section EE 52 (3) This section overrides section EE 52 . Defined in this Act: amount , deduction , depreciable property , depreciation loss , depreciation recovery income , income year Section EZ 23D: inserted (with effect on 4 September 2010), on 2 November 2012 (applying for the 2010–11 to the 2015–16 income years), by section 58(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).