Section CB 21 — Income Tax Act 2007: Farm land exclusion from sections CB 12 and CB 13

CB 21 Farm land exclusion from sections CB 12 and CB 13 Exclusion (1) Sections CB 12 and CB 13 do not apply if— (a) the land is a lot resulting from the division of a larger area of land into 2 or more lots; and (b) immediately before the land was divided, the larger area of land was occupied or used by the person, their spouse, civil union partner or de facto partner, or both of them, mainly for the purposes of a farming or agricultural business carried on by either or both of them; and (c) the area and nature of the land disposed of mean that it is then capable of being worked as an economic unit as a farming or agricultural business; and (d) the land was disposed of mainly for the purpose of using it in a farming or agricultural business. Circumstances for purposes of subsection (1)(d) (2) The circumstances of the disposal of the land are relevant to the decision on whether the land was disposed of mainly for the purpose of using it in a farming or agricultural business. The circumstances include— (a) the consideration for the disposal of the land: (b) current prices paid for land in that area: (c) the terms of the disposal: (d) a zoning or other classification relating to the land: (e) the proximity of the land to any other land being used or developed for uses other than farming or agricultural uses. Defined in this Act: business , dispose , land , pay Compare: 2004 No 35 s CB 19