New Zealand Tax Agency Seeks Comments on Tax Deduction for Expenses on Repairing Capital Asset

The New Zealand Inland Revenue Feb. 13 opened a consultation on Exposure Draft No. PUB00459, regarding a proposed question and answer document to clarify tax deductions for expenses incurred to repair a recently acquired capital asset for business or income-earning activities. The proposed question and answer document explains that: 1) the capital limitation in Section DA 2(1) of the Income Tax Act 2007 prevents taxpayers from claiming a tax deduction for such expenses as they are of a capital nature; 2) if the capital asset is an item of depreciable property, the expenses can be added to the cost of ...