Income Tax Act 2007

Deductions - Interest incurred in relation to certain land

DH 12: Valuation

You could also call this:

"How to work out the value of your land for tax purposes"

When working out deductions, you need to value your land. Your land is valued at its most recent capital value or annual value set by a local authority, unless it is described in section DH 4(2) and (3). If you got the land after the local authority last valued it, the land is valued at what you paid for it, or its market value if you got it from someone associated with you. If the first rule does not apply to your property, you value it using its tax book value. You can also use the valuation from your financial accounts if you prepare them according to accounting standards. You value other property using its tax book value or the valuation from your financial accounts, if you have one.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS675477.

This page was last updated on 29 January 2026 — View changes

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Part DDeductions
Interest incurred in relation to certain land

DH 12Valuation

For the purposes of this subpart, a person’s land, excluding land described in section DH 4(2) and (3), is—
valued at its most recent capital value or annual value set by a local authority; or
if the land was acquired after the most recent local authority valuation, it is valued at its acquisition cost or, in the case of an associated person acquisition, its market value.

For the purposes of this subpart, to the extent to which subsection (1) does not apply for a person’s property, the property is—
valued using its tax book value; or
if the person prepares financial accounts according to relevant accounting standards or legislative standards, valued using the financial accounts’ valuation.

Notes

Section DH 12: inserted (with effect on 27 March 2021), on 30 March 2022, by section 75 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
Section DH 12(2) heading: replaced (with effect on 27 March 2021), on 31 March 2023, by section 47 of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).