Download This PaperIncome Tax: Land Purchased for the Purpose of Sale
Recent Law, p. 278, August 1978
3 Pages Posted: 1 Feb 2010 Last revised: 1 May 2015
Date Written: Febuary 1, 2010
Abstract
Section 91 of the Income Tax Act 1976 provides that where a taxpayer disposes of trading stock for no or inadequate consideration the stock is deemed to have realised its market price. The market price is then bought into the calculation of the taxpayer’s assessable income. In the context of land purchases the crucial issue is whether the land was acquired for the purposes of resale. If so, the land is treated for tax purposes as if it were trading stock.
Keywords: Income Tax Act 1976, Income Tax, Trading Stock, Land Purchases
JEL Classification: K34
Suggested Citation: Suggested Citation
John Prebble KC (Contact Author)
Victoria University of Wellington, Te Herenga Waka - Faculty of Law ( email )
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New Zealand
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Institut für Österreichisches und Internationales Steuerrecht, Wirtschaftsuniversität Wien ( email )
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Vienna, Wien 1020
Austria