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Income Tax Act 2007

Recharacterisation of certain transactions - Transfers of relationship property

FB 3: Land acquired for certain purposes or under certain conditions

You could also call this:

"Land bought for special reasons or in special situations"

Illustration for Income Tax Act 2007

You need to know about land acquired for certain purposes. When land is transferred because of a relationship property settlement, it is treated as a disposal and acquisition. The transfer happens for an amount that equals the total cost of the land to the person transferring it. You are treated as having acquired the land on the date it was acquired by the person who transferred it. If you dispose of the land, you can find out about the tax consequences in section FB 5. This rule applies for certain sections of the law, including sections CB 6 to CB 12, CB 14, CB 17, CB 20, and CB 23, and Part D.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1516333.

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Money and consumer rights > TaxesHousing and property > Buying and selling homesHousing and property > Land use
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"Rules for transferring residential land during a relationship split"

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"Land transferred in a relationship settlement with a development plan"

Part FRecharacterisation of certain transactions
Transfers of relationship property

FB 3Land acquired for certain purposes or under certain conditions

  1. This section applies for the purposes of sections CB 6 to CB 12, CB 14, CB 17, CB 20, and CB 23 (which relate to the disposal of land) and Part D (Deductions) when land was acquired for a purpose set out in or under the conditions set out in any of those sections, and the land is transferred on a settlement of relationship property.

  2. The transfer is treated as a disposal and acquisition for an amount that equals the total cost of the land to the transferor at the date of transfer.

  3. The transferee is treated as having acquired the land on the date it was acquired by the transferor.

  4. For the tax consequences if the transferee disposes of the land, see section FB 5.

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