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Income Tax Act 2007

Timing and quantifying rules - Income equalisation schemes - Deduction

EH 7: Deduction of deposit

You could also call this:

“How to claim a deduction for deposits into the main income equalisation scheme”

You can get a deduction under the main income equalisation scheme. The amount you can deduct is the smaller of two things: either all the money you put into the scheme that year, or the most you’re allowed to put in for that year. You can claim this deduction in the same year you put the money in.

If you want to know more about when you’re allowed this deduction, you can check section DQ 1.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1514834.

Topics:
Money and consumer rights > Taxes
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“Earning interest on deposits in a main income equalisation account”

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EH 8: Refund of excess deposit, or

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Part E Timing and quantifying rules
Income equalisation schemes: Deduction

EH 7Deduction of deposit

  1. This section applies when a person is allowed a deduction under section DQ 1 (Main income equalisation scheme).

  2. The amount of the deduction is the lesser of—

  3. the total of the person’s deposits for the accounting year; and
    1. their main maximum deposit for the accounting year.

      1. The person is allowed the deduction in the accounting year.

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