Plain language law

New Zealand law explained for everyone

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:

“How timber or timber rights are treated when settling relationship property”

When you transfer timber or the right to take timber as part of settling your relationship property, the law treats this in a special way. It’s considered as if you sold the timber or the right to take timber, even though you didn’t actually sell it. The amount of money that’s thought to have changed hands is the same as what it cost you to get the timber or the right to take timber in the first place. This rule is used when figuring out income tax related to disposing of timber or rights to take timber, as mentioned in section CB 24.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

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

Topics:
Money and consumer rights > Taxes
Family and relationships > Marriage and partnerships
Previous

FB 5: Disposal of land, or

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

Next

FB 7: Land with standing timber, or

“Rules for transferring land with valuable timber during relationship property settlements”

Part F Recharacterisation 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.

      Compare