Section FA 9 — Income Tax Act 2007: Treatment when lease ends: lessee acquiring asset

FA 9 Treatment when lease ends: lessee acquiring asset Acquisition treated as sale (1) When a lessee under a finance lease acquires the personal property lease asset by the date on which the term of the lease ends, the acquisition is treated as the same sale that is treated as occurring under section FA 6 . When lessee or associated person acquires lease asset and later disposes of it (2) If a lessee under a finance lease, or a person associated with them, acquires the lease asset and later disposes of it for an amount that is more than the consideration they paid for it, the excess is income of the lessee under section CC 11 (Lessee acquiring lease asset on expiry of term of lease). Allocation and association (3) For the purposes of subsection (2),— (a) the excess is income of the lessee in the income year in which the lessee or associated person disposes of the asset: (b) association is determined at the time of acquisition by the associated person. Exception (4) Subsection (2) does not apply if the consideration derived on the disposal is income of the lessee or an associated person under a provision of this Act other than this section. Defined in this Act: amount , associated person , finance lease , income , income year , lessee , personal property lease asset , term of the lease , Compare: 2004 No 35 ss FC 8B(2) , FC 8E