Section DO 1 — Income Tax Act 2007: Enhancements to land, except trees

DO 1 Enhancements to land, except trees Deduction (1) A person is allowed a deduction for expenditure that they incur on the following in carrying on a farming or agricultural business on land in New Zealand: (a) the destruction of weeds or plants detrimental to the land: (b) the destruction of animal pests detrimental to the land: (c) the repair of flood or erosion damage to the land: (d) the destruction of scrub, stumps, or undergrowth on the land: (e) the clearing or removing from the land of scrub, stumps, or undergrowth: (f) the construction on the land of fences for farming or agricultural purposes, including buying wire or wire netting for the purpose of making new or existing fences rabbit-proof: (g) the regrassing and fertilising of all kinds of pasture, if the expenditure is not incurred in the course of a significant capital activity. Link with subpart DA (2) This section overrides the capital limitation. The general permission must still be satisfied and the other general limitations still apply. Defined in this Act: business , capital limitation , deduction , general limitation , general permission , New Zealand , significant capital activity , Compare: 2004 No 35 s DO 1