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FB 6: Timber or right to take timber
or “How timber or timber rights are treated when settling relationship property”
You could also call this:

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

If you own land with standing timber and transfer it as part of a relationship property settlement, there are special rules you need to know about. These rules apply when the timber isn’t just for decoration or incidental use. You’ll need a special certificate to prove this.

When you transfer the land and timber, it’s treated as if you sold it and the other person bought it. The price is set at how much the timber cost you when you first got it. This is important because it affects how the government calculates taxes on the transfer.

Remember, these rules are part of section CB 25, which deals with selling land that has standing timber on it. The certificate you need comes from section 44C of the Tax Administration Act 1994.

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Next up: FB 8: Patent applications and patent rights

or “Handling patents when couples split property”
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Part F Recharacterisation of certain transactions
Transfers of relationship property

FB 7Land with standing timber

  1. This section applies for the purposes of section CB 25 (Disposal of land with standing timber) when—

  2. land with standing timber on it is transferred on a settlement of relationship property; and
    1. the standing timber does not consist of ornamental or incidental trees, as evidenced by a certificate given under section 44C of the Tax Administration Act 1994.

      1. The transfer is treated as if—

      2. it were a disposal and acquisition for consideration; and
        1. the amount of consideration were equal to the total cost of timber to the transferor at the date of transfer.

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