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Income Tax Act 2007

Timing and quantifying rules - Valuation of livestock - Definitions

EC 32: Application of sections EC 33 to EC 37

You could also call this:

“Rules for valuing expensive farm animals”

Sections EC 33 to EC 37 explain how to value expensive farm animals, which are called high-priced livestock. You can choose between two ways to value these animals: the straight-line method or the diminishing value method.

If you decide to use the diminishing value method, you need to tell the Commissioner about your choice. You do this when you file your tax return for the first year that you use section EC 34 to work out the value of your high-priced livestock. Once you choose the diminishing value method, you can’t change your mind later for these animals.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1514431.

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Part E Timing and quantifying rules
Valuation of livestock: Definitions

EC 32Application of sections EC 33 to EC 37

  1. Sections EC 33 to EC 37 set out the rules for valuing high-priced livestock.

  2. A person may choose to use either the straight-line method or the diminishing value method to value high-priced livestock.

  3. If the person chooses to use the diminishing value method, they must give notice to the Commissioner that they are using the method at the time of filing their return of income for the first income year in which the value of the high-priced livestock is determined under section EC 34. The person cannot revoke their election to use the diminishing value method for the livestock.

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