New Zealand Tax Agency Seeks Comments on Proposed Updated Guidance on Repair, Maintenance Expense Deductions

The New Zealand Inland Revenue Oct. 20 opened a consultation on Exposure Draft No. PUB00505, to update the guidance on the income tax deductions for expenses incurred to repair or maintain tangible property used for business or income-generating activities. The updated guidance includes: 1) a clarification of the rules for identifying depreciable assets under step one when determining if the capital limitation applies, with an example of how assets can become not depreciable based on the work carried out; 2) clarifications on step two determinations regarding the nature and extent of the work performed, to align with the overall analytical ...