Income Tax Act 2007

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

HG 10: Disposal of livestock

You could also call this:

"Selling or giving away farm animals, like cows, to someone else"

When you dispose of some or all of your partner's interests to another partner and certain conditions apply, you need to consider the livestock. This includes female breeding livestock, and you must use either the national standard cost scheme or the cost price method for specified livestock, as described in section EC 22 or section EC 25. The value of the livestock at the end of the income year may be determined using section EC 26B for the new partner, for the purposes of section EC 2.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1185089.

This page was last updated on 29 January 2026 — View changes

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HG 9: Disposal of short-term agreements for sale and purchase, or

"Selling short-term sale and purchase agreements: what you need to know about tax"

HG 11: Limitation on deductions by partners in limited partnerships, or

"Rules for limited partnership tax deductions"

Part HTaxation of certain entities
Joint venturers, partners, and partnerships

HG 10Disposal of livestock

This section applies when a person (the exiting partner) disposes of some or all of their partner's interests to an entering partner and section HG 3(3) applies, to the extent to which those interests include specified livestock and that specified livestock includes female breeding livestock and, for the income year, the partners use—
the national standard cost scheme for specified livestock, described in section EC 22 (National standard cost scheme); or
the cost price method for specified livestock, described in section EC 25 (Cost price, replacement price, or market value).

Section EC 26B (Entering partners' cost base) may apply to the entering partner for the purposes of determining the value of the specified livestock at the end of an income year for the purposes of section EC 2 (Valuation of livestock).

Notes

Section HG 10: substituted (with effect on 1 April 2009), on 6 October 2009, by section 276(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
Section HG 10(1): amended (with effect on 1 April 2009), on 24 February 2016, by section 189(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).
Section HG 10 list of defined terms entering partner: inserted (with effect on 1 April 2009), on 24 February 2016, by section 189(2) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).