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Income Tax Act 2007

Deductions - Interest incurred in relation to certain land

DH 1: Interest related to certain land

You could also call this:

"Interest on certain land: what you can and can't claim"

Illustration for Income Tax Act 2007

This part of the law is about interest on certain land. It stops you from claiming a deduction for certain interest, even if other parts of the law say you can. The rules in this part override the general rules. You can find more information in sections like DH 2, DH 3, and DH 4. These sections explain when these rules apply and when they do not. Other sections, such as section DH 5, define important terms. You can also find definitions for terms like interposed residential property percentage in section DH 7 and grandparented residential interest in section DH 6. The law denies deductions for certain interest on land, which is explained in section DH 8. There are also rules for valuing things, which are in section DH 12.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS675437.

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Money and consumer rights > TaxesHousing and property > Buying and selling homesHousing and property > Land use
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Part DDeductions
Interest incurred in relation to certain land

DH 1Interest related to certain land

  1. The purpose of this subpart is to deny a person a deduction for certain interest incurred in relation to certain land, despite any other provision in this Part. The provisions of this subpart override the general permission. In this subpart—

  2. sections DH 2, DH 3, and DH 4 provide rules for when this subpart does and does not apply:
    1. section DH 5 provides definitions of key terms. Section DH 6 provides a definition of interposed residential property percentage. Section DH 7 provides a definition of grandparented residential interest:
      1. section DH 8 denies deductions for certain interest incurred in relation to certain land:
        1. section DH 12 provides valuation rules.

          Notes
          • Section DH 1: inserted (with effect on 27 March 2021), on , by section 75 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).