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QWB00082: Income tax - deductibility of farmhouse expenses
The Interpretation Statement considers the deductibility of expenditure relating to a farmhouse that forms part of a farming business. We have reviewed some long-standing concessions for the farming industry which permitted some farmers to claim deductions for private expenditure.
We are looking to bring tax accounting practice for farmhouse expenses into line with the law.
Deductions for farmhouse expenses are only available if they are incurred in carrying on the farming business. The current concession which allows a flat 25% deduction for farmhouse expenses without any evidence, as well as 100% deductions for interest and rates is to be withdrawn.
The main consequence of this is that sole traders and partners of partnerships can only claim deductions based on the actual business use of the farmhouse. This approach is consistent with what is required of other taxpayers in other industries, who operate their business from home. Farms owned and operated by other entities are not affected, and the statement clarifies the principles for deductibility across a variety of ownership structures. Any changes from consultation will apply from the start of the 2017-18 year.
Comment deadline: 22 December 2016
QWB00082 - PDF format (396kb | 26 pages)
ED0189 : Depreciation treatment for "Buildings with prefabricated stressed-skin insulation panels"
This Question We’ve Been Asked provides guidance for both taxpayers and Inland Revenue staff on which buildings the Commissioner considers come within the asset class “Buildings with prefabricated stressed-skin insulation panels” in the “Buildings and Structures” asset category in the Commissioner’s Table of Depreciation Rates.
Comment deadline: 30 November 2016
ED0189 - PDF format (268kb | 4 pages)
PUB00280: Goods and services tax - whether a racing syndicate or partnership can be a registered person
This QWBA considers whether a racing syndicate or partnership, whose activities are limited to the ownership (or leasing) of one or more horses for racing, can be registered for GST. In particular, it considers when the activities of a horse racing syndicate will be excluded from the "taxable activity" definition because they are being carried on as a "private recreational pursuit or hobby".
Comment deadline: 9 November 2016
PUB00280 - PDF format (160kb | 11 pages)
PUB00278: Income tax - deductibility of feasibility expenditure
This item considers the deductibility of feasibility expenditure. It updates and replaces "IS 08/02: Deductibility of feasibility expenditure" Tax Information Bulletin Vol 20, No 6 (July 2008): 12 to take account of the recent Supreme Court decision Trustpower Ltd v CIR  NZSC 91.
Comment deadline: 9 November 2016
PUB00278 - PDF format (501kb | 39 pages)
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