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Income Tax Act 2007

Timing and quantifying rules - Income equalisation schemes - Deductions

EH 67: Deduction of deposit

You could also call this:

“How you can reduce your tax by depositing money into the thinning operations income equalisation scheme”

When you’re allowed a deduction under section DQ 3 for the thinning operations income equalisation scheme, you can take off some money from your taxes. The amount you can take off is the smaller of two things: either all the money you put into the scheme for the year, or the most you’re allowed to put in for the year. You get to use this deduction in the same year you put the money in.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1515010.

Topics:
Money and consumer rights > Taxes
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EH 66: Interest on deposits in thinning operations income equalisation account, or

“Interest earned on a special forestry savings account”

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EH 68: Refund of excess deposit, or

“Getting money back if you deposit too much for thinning operations”

Part E Timing and quantifying rules
Income equalisation schemes: Deductions

EH 67Deduction of deposit

  1. This section applies when a person is allowed a deduction under section DQ 3 (Thinning operations 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 thinning operations maximum deposit for the accounting year.

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

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