Section EZ 6 — Income Tax Act 2007: Reduction: broodmare previously used for breeding in New Zealand: pre-1 August 2006

EZ 6 Reduction: broodmare previously used for breeding in New Zealand: pre-1 August 2006 Broodmare to which this section applies (1) This section applies to a broodmare that section EC 39(1) or (2) (First income year in breeding business) applies to,— (a) before 1 August 2006; or (b) for an income year ending on or after 1 August 2006, if a requirement of paragraphs (a) to (c) of section EC 39(1) or (2) is first met before 1 August 2006. Broodmare when first used before 1 April 2001 (2) For the purposes of sections EC 39 and EC 40 (which relate to bloodstock), the reduction applying to the value of a broodmare to which section EC 39(1) applies and sections EC 41 (Reduction: bloodstock not previously used for breeding in New Zealand) and EZ 5 do not apply is calculated using the formula— cost price of broodmare 15 − age of broodmare. Definition of item in formula (3) In the formula in subsection (2), age of broodmare is— (a) 12 years of age; or (b) the actual age in years, if the broodmare is 11 years of age or less at the end of the income year. Broodmare when first used on or after 1 April 2001 but before 1 August 2006 (4) For the purposes of sections EC 39 and EC 40 , the reduction applying to the value of a broodmare to which section EC 39(2) applies and sections EC 41 and EZ 5 do not apply is calculated using the formula— cost price of broodmare 11 − age of broodmare. Definition of item in formula (5) In the formula in subsection (4), age of broodmare is— (a) 8 years of age; or (b) the actual age in years, if the broodmare is 7 years of age or less at the end of the income year. Defined in this Act: broodmare , cost price , income year , year , Compare: 2004 No 35 s EZ 4C