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New Zealand law explained for everyone

Income Tax Act 2007

Income - Exempt income

CW 8B: Certain amounts derived from use of assets

You could also call this:

“Money from using certain assets and how it's taxed”

If you make money from using a special kind of asset, this part of the law tells you what happens to that money. These special assets are described in section DG 3.

You can choose to make the money you earn from using this asset tax-free. To do this, you need to meet the requirements in section DG 21 and choose to treat the income as tax-free.

Sometimes, you might use the asset for private reasons. If you make money from this private use, as described in section DG 4(1), that money is also tax-free.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM5490851.

Topics:
Money and consumer rights > Taxes
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Part C Income
Exempt income

CW 8BCertain amounts derived from use of assets

  1. This section applies when a person derives income from the use of an asset described in section DG 3 (Meaning of asset for this subpart).

  2. Income that the person derives from the use of the asset is exempt income if—

  3. they meet the requirements of section DG 21 (Opting out of treatment under this subpart); and
    1. they choose under that section to treat the income as exempt income.

      1. An amount of income that the person derives in relation to the private use of an asset as described in section DG 4(1) (Meaning of private use for this subpart) is exempt income.

      Notes
      • Section CW 8B: inserted (with effect on 1 April 2013 and applying for the 2013–14 and later income years for an item of property referred to in section DG 3(2)(a)(i), and for the 2014–15 and later income years for an item of property referred to in section DG 3(2)(a)(ii) and (iii)), on , by section 13(1) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).