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Income Tax Act 2007

Timing and quantifying rules - Spreading of specific income

EI 1: Spreading backward of income from timber

You could also call this:

“Dividing timber sale income across multiple tax years”

When you make money from selling timber or land with standing timber, you can spread this income across different tax years. This rule applies to income you get from selling timber, the right to take timber, or land that has timber on it.

You can choose to divide this income between the year you receive it and up to three previous years. This means you can spread the money you made over a few years instead of counting it all in one year.

If you want to do this, you need to ask the Commissioner. You have to make this request within one year after the end of the tax year when you got the income from the timber or land sale.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1515056.

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Part E Timing and quantifying rules
Spreading of specific income

EI 1Spreading backward of income from timber

  1. This section applies when a person derives income under section CB 24 (Disposal of timber or right to take timber) or CB 25 (Disposal of land with standing timber).

  2. The person may allocate the income between the income year in which they derive it and any 1 or more of the previous 3 income years.

  3. A person who wants to make an allocation under subsection (2) must apply to the Commissioner no later than 1 year after the end of the income year in which they derive the income.

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Notes
  • Section EI 1(3): amended, on , by section 26(1) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).
  • Section EI 1 list of defined terms apply: inserted, on , by section 26(2) of the Taxation (Transformation: First Phase Simplification and Other Measures) Act 2016 (2016 No 27).