Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Timing and quantifying rules - Valuation of livestock - Definitions

EC 45: Residual value of bloodstock

You could also call this:

“Minimum tax value for racehorses and breeding horses”

If you own bloodstock, which means horses used for breeding or racing, you need to know about their value for tax purposes. The law says that when you’re working out the closing value of your bloodstock at the end of the tax year, it can never be less than $1. Even if you think the horse isn’t worth anything, for tax reasons, you must say it’s worth at least $1. This rule helps make sure all bloodstock has some value on the books, even if it’s just a small amount.

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 It might be out of date or be missing some parts.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

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1514469.

Topics:
Money and consumer rights > Taxes
Previous

EC 44: Other bloodstock, or

“Valuing bloodstock not covered by specific rules”

Next

EC 46: Use of bloodstock for racing, or

“Rules for treating racing bloodstock as part of your breeding business”

Part E Timing and quantifying rules
Valuation of livestock: Definitions

EC 45Residual value of bloodstock

  1. If the closing value of any bloodstock would be less than $1 in the absence of this section, the closing value is $1.

Compare