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Income Tax Act 2007

Timing and quantifying rules - Allocation of deductions for excess residential land expenditure - Exclusions from rules

EL 9: Main home exclusion

You could also call this:

“Tax rule exemption for residential land used mainly as your home”

You don’t have to follow Section EL 4 for your residential land in an income year if you use more than half of the land as your main home for most of that year.

If the land belongs to a trust, this rule still applies when a person who benefits from the trust uses more than half of the land as their main home for most of the income year. However, the main person who set up the trust must not have a separate main home.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS223680.

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Part E Timing and quantifying rules
Allocation of deductions for excess residential land expenditure: Exclusions from rules

EL 9Main home exclusion

  1. Section EL 4 does not apply to residential land of a person for an income year if more than 50% of the land is used for most of the income year by the person as their main home.

  2. Subsection (1) applies to trust property when—

  3. more than 50% of the land is used for most of the income year by a beneficiary of the trust as their main home; and
    1. a principal settlor of the trust does not have a separate main home.

      Notes
      • Section EL 9: inserted (with effect on 1 April 2019), on , by section 62(1) (and see section 62(2) and (3) for application) of the Taxation (Annual Rates for 2019–20, GST Offshore Supplier Registration, and Remedial Matters) Act 2019 (2019 No 33).