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Income Tax Act 2007

Recharacterisation of certain transactions - Tax relief for emergencies - Optional rule for valuation of group assets

FP 25: Livestock number for section FP 24

You could also call this:

“How to work out your total number of livestock for tax purposes”

When you calculate your income using the formula in section FP 24, you need to work out the number of livestock. You do this by adding the number of breeding stock you valued, and the number of stock that were culled, then subtracting the number of stock you had at the start of the year. The breeding stock are animals you plan to breed from, and you valued them using a special method.

The culled stock are animals that were destroyed, as mentioned in section FP 23(1)(b). You also need to know the number of stock you had at the start of the year, which is called the opening stock. You use these numbers to work out the total number of livestock.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS1432229.

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"Rules about which farm animals are covered by tax laws"

Part F Recharacterisation of certain transactions
Tax relief for emergencies: Optional rule for valuation of group assets

FP 25Livestock number for section FP 24

  1. When a person calculates an amount of income under the formula in section FP 24, this section provides the formula to calculate the number for a class of livestock that is referred to in subsection (5)(a) of that section.

  2. The number for a class of livestock is calculated under the following formula:

    valuation method breeding stock + culled stock – opening stock.

    Where:

    • In the formula in subsection (2), for a class of livestock,—

    • valuation method breeding stock is the number of livestock of that class that—
      1. were breeding stock or stock that the person expected to be capable of, and intended be used for, breeding upon reaching maturity; and
        1. the person valued under the national standard cost scheme or the cost price method in the income year before the cull year:
        2. culled stock is the number of livestock of that class that are part of the destroyed livestock referred to in section FP 23(1)(b):
          1. opening stock is the number of livestock of that class that the person had on hand at the start of the cull year.

            Notes
            • Section FP 25: inserted, on , by section 65 of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).