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Income Tax Act 2007

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

FC 8: Transfer of certain financial arrangements

You could also call this:

“Rules for transferring financial arrangements after death”

This law talks about what happens to certain financial arrangements when someone dies. If you die and have a financial arrangement, it might be transferred to someone else.

If you were a cash basis person when you died, and the trustee of your estate is also a cash basis person, the financial arrangement must be valued at its cost. A cash basis person is someone who handles their finances in a specific way for tax purposes.

The law refers to other sections for more details. If you want to know more about when this applies, you can check section FC 1(1)(a) or (b). To understand what a cash basis person is, you can look at section EW 60(1).

Remember, this is just one part of a bigger set of rules about taxes and what happens to your money and property when you die.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1516394.

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Part F Recharacterisation of certain transactions
Distribution, transmission, and gifts of property

FC 8Transfer of certain financial arrangements

  1. This section applies, in the circumstances described in section FC 1(1)(a) or (b), to a transfer of a financial arrangement on a person’s death.

  2. If the deceased person was a cash basis person and the trustee of the deceased person’s estate is a cash basis person under section EW 60(1) (Trustee of deceased’s estate), the property must be valued at cost.

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Notes
  • Section FC 8 list of defined terms property: inserted, on , by section 243 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).