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Income Tax Act 2007

Income - Income from business or trade-like activities - Exclusion for investment land

CB 23: Investment exclusion from sections CB 12 and CB 13

You could also call this:

“Exclusion for land improvements made to earn income”

You don’t have to worry about sections CB 12 and CB 13 if two things are true. First, the work you’re doing is to create or make a development, division, or improvement on some land. Second, you’re doing this development, division, or improvement so you can use the land to earn income from it, like the kind of income described in section CC 1. This means if you’re improving the land to make money from it in a way that’s talked about in section CC 1, you won’t have to deal with what sections CB 12 and CB 13 say.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1512465.

Topics:
Money and consumer rights > Taxes
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Part C Income
Income from business or trade-like activities: Exclusion for investment land

CB 23Investment exclusion from sections CB 12 and CB 13

  1. Sections CB 12 and CB 13 do not apply if—

  2. the work involved in the undertaking or scheme is to create or effect a development, division, or improvement; and
    1. the development, division, or improvement is for use in, and for the purposes of, the person’s deriving from the land income of the kind described in section CC 1 (Land).

      Compare
      Notes
      • Section CB 23: amended, on , by section 312(2) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
      • Section CB 23 heading: amended, on , by section 312(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).