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Income Tax Act 2007

Recharacterisation of certain transactions - Distribution, transmission, and gifts of property - Exceptions for residential land transferred to trustees of certain trusts or other entities

FC 9C: Residential land: certain recipients

You could also call this:

"Selling residential land you got from someone else"

Illustration for Income Tax Act 2007

When you sell residential land, you need to work out your net income from it. If you got the land from someone else, as described in section FC 9B(a), (b), (c), (d), or (e), you are treated as buying it for the higher of two amounts. The two amounts are what it cost the person who gave it to you, or what you paid them for it.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS694004.

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Topics:
Money and consumer rights > TaxesHousing and property > Buying and selling homes
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FC 9B: Residential land: certain transferors, or

"Selling your home: how it affects your income"

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FC 9D: Residential land: certain recipients of Treaty of Waitangi land, or

"Selling residential land given by the Crown under the Treaty of Waitangi"

Part FRecharacterisation of certain transactions
Distribution, transmission, and gifts of property: Exceptions for residential land transferred to trustees of certain trusts or other entities

FC 9CResidential land: certain recipients

  1. For the purposes of calculating a person’s net income in relation to the disposal of residential land for which they derive an amount of income under section CB 6A or CZ 39 (which relate to residential land), if the person is a recipient of a transfer, as described in section FC 9B(a), (b), (c), (d), or (e), then they are treated as acquiring the relevant land for the greater of either its cost to the person (the transferor) that transferred it to them or the consideration they give the transferor for the land.

Notes
  • Section FC 9C: inserted, on , by section 104 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).