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Income Tax Act 2007

Timing and quantifying rules - Valuation of livestock - Definitions

EC 43: Accident, birth deformity, or infertility

You could also call this:

“Valuing bloodstock affected by health issues or accidents”

If you have bloodstock (horses used for breeding or racing) at the end of an income year, and something has happened to make it worth less than half of what it would normally be worth, this law applies to you. This could be because of an accident, a birth defect, or if the horse can’t have babies.

You can choose to value your bloodstock at what it’s actually worth now, even though it’s worth less than usual.

If you decide to do this, in the following years, you’ll need to keep valuing that bloodstock at what it’s actually worth each year, not what it might have been worth if nothing had happened to it.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1514465.

Topics:
Money and consumer rights > Taxes
Business > Industry rules
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EC 42: Reduction: bloodstock previously used for breeding in New Zealand, or

“How to reduce the tax value of bloodstock used for breeding in New Zealand”

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EC 44: Other bloodstock, or

“Valuing bloodstock not covered by specific rules”

Part E Timing and quantifying rules
Valuation of livestock: Definitions

EC 43Accident, birth deformity, or infertility

  1. This section applies when a person has bloodstock on hand at the end of an income year whose market value is, because of accident, birth deformity, or infertility, less than 50% of what its market value would have been if the accident, birth deformity, or infertility had not occurred.

  2. The person may value the bloodstock at its market value.

  3. If the person applies subsection (2), the closing value of the bloodstock in later income years is its market value in the applicable income year.

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