Section HB 10 — Income Tax Act 2007: Disposal of livestock

HB 10 Disposal of livestock When this section applies (1) This section applies when a person disposes of some or all of their owner's interests to an entering owner and section HB 4(2) applies, to the extent to which those interests include specified livestock and that specified livestock includes female breeding livestock and, for the income year, the owners use–– (a) the national standard cost scheme for specified livestock, described in section EC 22 (National standard cost scheme); or (b) the cost price method for specified livestock, described in section EC 25 (Cost price, replacement price, or market value). Entering owner's cost base (2) Section EC 26B (Entering partners' cost base) may apply to the entering owner for the purposes of determining the value of the specified livestock at the end of an income year for the purposes of section EC 2 (Valuation of livestock), treating the entering owner as an entering partner and making other necessary modifications to section EC 26B to give effect to the purpose of this section (for example, references in section EC 26B to “ partners ” should be modified to references to “ owners ” and references to “ section HG 10 ” should be modified to references to “ section HB 10 ” ). Defined in this Act: amount , cost price , dispose , entering owner , entering partner , income year , look-through company , national standard cost scheme , owner's interests , specified livestock , Section HB 10: inserted, on 1 April 2011 (applying for income years beginning on or after 1 April 2011, and for the purposes of the Commissioner receiving LTC elections, on and after 21 December 2010), by section 78(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010, No 130).