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Income Tax Act 2007

Recharacterisation of certain transactions - Transfers of relationship property

FB 6: Timber or right to take timber

You could also call this:

"Transferring timber or the right to cut it down in a relationship settlement"

Illustration for Income Tax Act 2007

When you transfer timber or a right to take timber as part of a settlement of relationship property, this section applies for the purposes of section CB 24. You treat the transfer as if you sold and bought it for a price. The price is the total cost of the timber or right to the person transferring it at the time of transfer.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1516339.

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Topics:
Money and consumer rights > TaxesFamily and relationships > Marriage and partnershipsHousing and property > Buying and selling homes
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FB 5: Disposal of land, or

"Rules for giving away or losing land to someone who isn't family or a close friend"

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FB 7: Land with standing timber, or

"Selling land with trees as part of a relationship settlement"

Part FRecharacterisation of certain transactions
Transfers of relationship property

FB 6Timber or right to take timber

  1. This section applies for the purposes of section CB 24 (Disposal of timber or right to take timber) when timber, or a right to take timber, is transferred on a settlement of relationship property.

  2. The transfer is treated as if—

  3. it were a disposal and acquisition for consideration; and
    1. the amount of consideration were equal to the total cost of timber, or the right to take timber, to the transferor at the date of transfer.

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