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Income Tax Act 2007

Recharacterisation of certain transactions - Distribution, transmission, and gifts of property

FC 6: Forestry assets transferred to close relatives

You could also call this:

“How forestry assets are treated when given to close family after someone dies”

When someone with forestry assets dies and those assets are given to a close family member, this law explains how it’s treated. Forestry assets include timber, standing timber (trees that are still growing), or the right to take timber.

If you receive forestry assets from a close relative who has died, it’s treated the same way as if you received property in a relationship settlement. This includes any transfers that might happen through the person who manages the estate of the person who died.

If the forestry asset is timber or the right to take timber, it’s handled under [section FB 6]. If it’s standing timber, it’s dealt with under [section FB 7].

This rule applies even if the assets go through an executor or administrator before they get to you.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1516389.

Topics:
Money and consumer rights > Taxes
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Part F Recharacterisation of certain transactions
Distribution, transmission, and gifts of property

FC 6Forestry assets transferred to close relatives

  1. This section applies in the circumstances described in section FC 1(1)(a) or (b) when forestry assets are transferred on a person’s death to a close relative of the person.

  2. A transfer of a forestry asset, including any intervening transfer to an executor or administrator, is treated as a transfer of property on a settlement of relationship property—

  3. under section FB 6 (Timber or right to take timber), when the forestry asset is timber or a right to take timber:
    1. under section FB 7 (Land with standing timber), when the forestry asset is standing timber.

      1. In this section, forestry assets means timber, standing timber, or a right to take timber.

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      Notes
      • Section FC 6(2): replaced (with effect on 1 April 2008 and applying for the 2008–09 and later income years), on , by section 169(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).