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Income Tax Act 2007

Recharacterisation of certain transactions - Transfers of relationship property

FB 7: Land with standing timber

You could also call this:

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

Illustration for Income Tax Act 2007

When you transfer land with standing timber as part of a relationship property settlement, this section applies if you are looking at section CB 25 (Disposal of land with standing timber). You need to make sure the standing timber is not just ornamental or incidental trees, and you can get a certificate under section 44C of the Tax Administration Act 1994 to prove this. You treat the transfer as if you sold the land and the buyer paid you for it. The amount you are considered to have been paid is the total cost of the timber to you at the time of the 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=DLM1516341.

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

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Part FRecharacterisation 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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