Section FA 14 — Income Tax Act 2007: Deductibility of expenditure or loss under hire purchase agreement

FA 14 Deductibility of expenditure or loss under hire purchase agreement Buyer treated as owner (1) The buyer in section FA 12 is treated as the owner of the property for the purposes of subpart EE (Depreciation). Seller not treated as owner (2) The seller in section FA 12 is not treated as the owner of the property for the purposes of subpart EE . Discounted or bad debts (3) Subsection (4) applies if the seller takes an amount calculated under section FA 15 into account as the cost of trading stock or in the calculation of their net income for an income year. No deduction for seller (4) The seller is denied a deduction under section DB 14 or DB 31 (which relate to debts sold at a discount and bad debts) for an amount owing under the hire purchase agreement. Defined in this Act: amount , deduction , hire purchase agreement , income year , net income , , trading stock Compare: 2004 No 35 s FC 10(1)(c), (5)(c)