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Income Tax Act 2007

Deductions - Income equalisation schemes and environmental restoration accounts schemes

DQ 3: Thinning operations income equalisation scheme

You could also call this:

“Smoothing out income from forest thinning for tax purposes”

If you make a deposit for a tax year under the thinning operations income equalisation scheme, you can deduct an amount from your income. The amount you can deduct is explained in section EH 67(2). You deduct this amount in the income year that matches the tax year mentioned in section EH 67(3).

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

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1514008.

Topics:
Money and consumer rights > Taxes
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DQ 2: Adverse event income equalisation scheme, or

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

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DQ 4: Environmental restoration accounts scheme, or

“Tax deductions for payments into environmental restoration accounts”

Part D Deductions
Income equalisation schemes and environmental restoration accounts schemes

DQ 3Thinning operations 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 67(2) (Deduction of deposit).

  2. The deduction is allocated to the income year corresponding to the tax year described in section EH 67(3).

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

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