Income Tax Act 2007

Deductions - Farming and aquacultural business expenditure

DO 9: Meaning of replaced area fraction

You could also call this:

“How to calculate the percentage of your horticultural plot that's been replanted or regrafted”

In section DO 6, you’ll find out what ‘replaced area fraction’ means for a planting in a year. It’s calculated using a simple formula: (replacement area ÷ plot area) × 100%.

The ‘replacement area’ is the part of your plot where you’ve planted or regrafted new listed horticultural plants during the year to replace old ones. You measure this area at the end of the year.

The ‘plot area’ is the total size of your entire plot at the end of the year.

To work out the replaced area fraction, you divide the replacement area by the plot area and then multiply by 100%. This gives you a percentage that shows how much of your plot you’ve replanted or regrafted in that year.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1513956.

Topics:
Money and consumer rights > Taxes
Environment and resources > Farming and fishing

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Part D Deductions
Farming and aquacultural business expenditure

DO 9Meaning of replaced area fraction

  1. In section DO 6, replaced area fraction, for a planting and an income year, means the amount calculated using the formula—

    (replacement area ÷ plot area) × 100%.

    Where:

    • In the formula in subsection (1),—

    • replacement area is the area, at the end of the income year, of the part of the plot on which listed horticultural plants in the planting are planted or regrafted during the income year as replacement plants:
      1. plot area is the total area, at the end of the income year, of the plot.
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