Section FZ 6 — Income Tax Act 2007: Transitional valuation rule for estate property

FZ 6 Transitional valuation rule for estate property What this section applies to (1) This section applies to property transferred under section FC 1(1)(a) (What this subpart does) either on a person’s death or on a distribution by an executor, administrator, or trustee of an estate, if— (a) the death or distribution occurred before 1 October 2005; and (b) in the tax year in which the property passes, all beneficiaries of the deceased person are resident in New Zealand, and no income of a beneficiary is exempt income under section CW 43 (Charitable bequests). Market value or value under settlement of relationship property (2) The valuation of the transferred property for tax purposes for the corresponding income year in which the death or distribution occurred is measured as a transfer occurring immediately before the death of the person, or at the date of distribution, as applicable, at— (a) market value; or (b) a value under subpart FB (Transfers of relationship property) for property of the type; or (c) a value under subsection (4). Returns of income (3) For the purposes of providing a return of income for the deceased person, beneficiary, and estate, a value determined under subsection (2) is treated as correct. Requirements of other provisions (4) Despite subsection (3), if this Act, the Income Tax Act 2004 , or Income Tax Act 1994, requires the use of a market value for an item of property, that value must be used in the return of income. Defined in this Act: corresponding income year , exempt income , income , market value , New Zealand , property , resident in New Zealand , return of income , tax year , trustee , Compare: 2004 No 35 ss FI 9 , FI 10