Plain language law

New Zealand law explained for everyone

 Plain Language Law homepage
Back to
DP 11: Cost of timber
or “How to claim a tax deduction for timber costs when selling timber”
You could also call this:

“Tax deductions for farmers who save income in a special scheme”

You can get a tax deduction if you put money into the main income equalisation scheme for a tax year. The amount you can deduct is explained in section EH 7(2). You can claim this deduction in the income year that matches the tax year mentioned in section EH 7(3).

This rule adds to the general permission for tax deductions and overrides the capital limitation. However, other general limitations on tax deductions still apply.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

Next up: DQ 2: Adverse event income equalisation scheme

or “Tax deduction for adverse event income equalisation scheme no longer available”
Next

Part D Deductions
Income equalisation schemes and environmental restoration accounts schemes

DQ 1Main income equalisation scheme

  1. A person who has made a deposit for a tax year is allowed a deduction of the amount quantified in section EH 7(2) (Deduction of deposit).

  2. The deduction is allocated to the income year corresponding to the tax year described in section EH 7(3).

  3. This section supplements the general permission and overrides the capital limitation. The other general limitations still apply.

Compare