Section EZ 24 — Income Tax Act 2007: Meaning of new asset

EZ 24 Meaning of new asset Meaning (1) New asset means an item of property that a person owns to which subsections (2) to (4) apply and to which subsection (5) does not apply. Acquisition date (2) The item is— (a) acquired by the person in the period starting on 16 December 1991 and ending with the close of 31 March 1993, other than under a binding contract that they entered into before 16 December 1991; or (b) acquired by the person in the period starting on 1 April 1993 and ending with the close of 31 March 1994, under a binding contract that they entered into in the period starting on 16 December 1991 and ending with the close of 31 March 1993; or (c) one to which all the following apply: (i) it was acquired by the person before 16 December 1991 as trading stock; and (ii) it was used by the person as a capital item for the first time in the period starting on 16 December 1991 and ending with the close of 31 March 1993; and (iii) it qualified for a deduction for depreciation under section 108 of the Income Tax Act 1976 in the period starting on 16 December 1991 and ending with the close of 31 March 1993. Used before 1 April 1994 (3) The item is used by the person before 1 April 1994. Not used by anyone previously (4) The item is— (a) not acquired by any other person before the date on which the person acquired it; and (b) not used by any other person before the date on which the person acquired it; and (c) not held for use by any other person before the date on which the person acquired it; and (d) not an item or part of an item that qualified for a deduction for depreciation under the Income Tax Act 1976 for a period before the date on which the person acquired it. Exclusion (5) A constructed item that a person owns is not a new asset if— (a) its construction started before 16 December 1991 (but this paragraph does not apply to the extent to which the item is trading stock to which subsection (2)(c) applies); or (b) its construction started on or after 16 December 1991 under a binding contract that the person entered into before 16 December 1991; or (c) its construction was not completed before 1 April 1994; or (d) the item was not first used by the person before 1 April 1994. Defined in this Act: acquire , new asset , trading stock Compare: 2004 No 35 s EZ 22