Financial arrangement rules

A financial arrangement is an arrangement where money is provided now and paid back later. The financial arrangement rules apply to New Zealand tax residents.

Examples of financial arrangements include:

a loan to buy a rental property
a US Treasury bond
a foreign currency bank account.

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Amounts the financial arrangement rules apply to The financial arrangement rules can apply to amounts that might otherwise be treated as capital amounts.
Cash basis persons Cash-basis persons generally return income from a financial arrangement when they receive it and claim deductions for expenses when they pay them.
Base price adjustments When a financial arrangement ends, for example you close your foreign bank account, you must do a base price adjustment (BPA) whether or not you're a cash basis person.
Excepted financial arrangements Some arrangements are excluded from the financial arrangement rules.

Ngā ture whakaritenga ahumoni (ngā ture FA) Financial arrangement rules

Financial arrangement rules