Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Taxation of certain entities - Joint venturers, partners, and partnerships

HG 1: Joint venturers

You could also call this:

“How to report income and expenses when you work with others but aren't business partners”

When you and someone else make money or have expenses together, but you’re not partners in a business, this law applies to you. It says you need to figure out your own income for the tax year by looking at your part of the money you made together and the expenses you shared.

You have to work out how much of the shared income and expenses belong to you. Then, you use that information to calculate your net income for the tax year.

If you run an airport, this law doesn’t apply to the money you make or the expenses you have from your airport activities.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1185056.

Topics:

Money and consumer rights > Taxes

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Part H Taxation of certain entities
Joint venturers, partners, and partnerships

HG 1Joint venturers

This section applies when 2 or more people derive income jointly or have deductions jointly, and they are not partners in the same partnership.
Each person must calculate their net income for a tax year taking into account their share of the joint income and deductions.
This section does not apply to the income derived by and the deductions of an airport operator from activities that are activities undertaken as an airport operator.

Notes

Section HG 1: inserted, on 1 April 2008, by section 19(1) of the Taxation (Limited Partnerships) Act 2008 (2008 No 2).