Section EZ 23G — Income Tax Act 2007: Insurance for repairs of Canterbury earthquake damage: optional timing rule for income, deductions

EZ 23G Insurance for repairs of Canterbury earthquake damage: optional timing rule for income, deductions When this section applies (1) This section applies for a person and an item of depreciable property 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 damage— (i) does not result in the item being subject to a disposal and reacquisition under section EZ 23C ; and (ii) does not meet the requirements of section EE 47(4) (Events for purposes of section EE 44 ); and (c) the person is entitled to an amount of insurance or compensation for the damage to the item; and (d) the person chooses to apply this section for all items of depreciable property meeting the requirements of paragraphs (a) to (c). Attribution of income from insurance (2) If the amount of insurance or compensation for the damage (the insurance receipt ) is derived or able to be reasonably estimated before the end of the 2015–16 income year, the person's income from the insurance receipt is attributed to the earlier of— (a) the 2015–16 income year: (b) the first income year in which— (i) the amount of expenditure for total repair of the damage (the repair cost ) is or has been incurred or able to be reasonably estimated; and (ii) the insurance receipt is or has been derived or able to be reasonably estimated. Attribution of deductions for repairs (3) If the repair cost is incurred or able to be reasonably estimated before the end of the 2015–16 income year, the person's deductions for the repair cost are attributed to the earlier of— (a) the 2015–16 income year: (b) the first income year in which— (i) the repair cost is or has been incurred or able to be reasonably estimated; and (ii) the insurance receipt is or has been derived or able to be reasonably estimated. Relationship with other sections (4) This section overrides sections CG 4 , EE 22 , and EE 52 (which provide for receipts of insurance or indemnity payments) in relation to the timing of the person's— (a) income from the insurance receipt: (b) deductions for the repair cost. Defined in this Act: amount , deduction , income , income year Section EZ 23G: inserted (with effect on 4 September 2010), on 2 November 2012 (applying for the 2010–11 to the 2015–16 income years), by section 61(1) of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).