Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Deductions - Forestry expenditure

DP 7: Land contouring: no deduction

You could also call this:

“You can't claim tax deductions for land shaping costs related to timber sales”

If you make money from selling timber or land with standing timber, you can’t claim a deduction for any money you spend on shaping or contouring the land. This rule applies even if you usually could claim deductions for other business expenses. The law says you’re not allowed to deduct these land contouring costs from your income when you work out how much tax you need to pay. This rule is more important than the general rules about what you can deduct.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1513991.

Topics:
Money and consumer rights > Taxes
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DP 6: Forestry encouragement agreement: no deduction, or

“No deduction for exempt advance payments under forestry agreements”

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DP 8: Forestry business on land acquired from the Crown, Maori owners, or holding company: no deduction, or

“No tax deduction for forestry businesses paying interest on certain Crown or Māori land loans”

Part D Deductions
Forestry expenditure

DP 7Land contouring: no deduction

  1. A person who derives income under section CB 24 (Disposal of timber or right to take timber) or CB 25 (Disposal of land with standing timber) is denied a deduction for expenditure that they incur on land contouring in the course of deriving the income.

  2. This section overrides the general permission.

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