Section DP 1 — Income Tax Act 2007: Expenditure of forestry business

DP 1 Expenditure of forestry business Deduction (1) A person carrying on a forestry business on land in New Zealand is allowed a deduction for expenditure that they incur on— (a) administrative overheads, rates, rent, insurance premiums, or other expenses of the same kinds: (b) interest on money borrowed for the purposes of the business and employed as capital in the business: (c) planting or maintaining trees on the land: (d) applying fertiliser after the planting of the trees: (e) disease control, pest control, or weed control (excluding releasing): (f) repair or maintenance of plant, machinery, or equipment used by the person mainly in— (i) planting or maintaining trees on the land; or (ii) preparing or otherwise developing the land for the person’s forestry operations: (g) repair or maintenance of land improvements, other than trees, effected on the land and used by the person mainly in the business: (h) the construction to or on the land of access tracks that are— (i) constructed for a specific operational purpose; and (ii) used for no longer than 12 months after construction: (i) the cost of standing timber that is lost or destroyed. Timing of deduction (2) Although timber is revenue account property, a deduction for expenditure described in subsection (1) is not allocated under section EA 2(2) (Other revenue account property) but under section BD 4(2) (Allocation of deductions to particular income years). Link with subpart DA (3) 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 , forestry business , general limitation , general permission , interest , New Zealand , revenue account property , standing timber , timber , Compare: 2004 No 35 s DP 1 Section DP 1 list of defined terms forestry business : inserted (with effect on 1 April 2008), on 7 December 2009, by section 126 of the Taxation (Consequential Rate Alignment and Remedial Matters) Act 2009 (2009 No 63).