Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

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

CB 24: Disposal of timber or right to take timber

You could also call this:

“Selling timber or timber rights counts as income”

When you sell timber or give someone the right to take timber, you need to count the money you get as income. This is true even if you don’t own the land where the trees are growing.

There’s another part of the law, Section GC 2, that might come into play. This section might say you’ve made money even if you just let someone take timber or if you sell trees that are still standing.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1512468.

Topics:
Money and consumer rights > Taxes
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CB 23B: Land partially disposed of or disposed of with other land, or

“Rules for selling part or all of a specific piece of land, or selling it with other land”

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CB 25: Disposal of land with standing timber, or

“Tax rules for selling land with trees”

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

CB 24Disposal of timber or right to take timber

  1. An amount is income of a person if they derive it from—

  2. disposing of timber; or
    1. disposing of a right to take timber.

      1. Subsection (1) applies whether or not the person owns the land on which the timber is situated.

      2. Section GC 2 (Disposals of timber rights or standing timber) may apply to treat a person as deriving an amount on the grant of a right to take timber or disposal of standing timber.

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