19 Repairs & Maintenance - Course Book (Electronic Copy)

Prices NZD and ex GST - Course date: September 2019

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Product Description

Investment in fixed assets is a significant part of the capital outlay for a business.  The income tax deduction for expenditure loss, in relation to existing fixed assets, is an area that continues to cause many problems for business owners and accountants.


The current income tax rules provide that expenditure on the maintenance or repair of a capital asset used to derive assessable income can be deducted for income tax purposes under the general deductibility rules. This is provided that the expenditure is not a capital item.


These rules provide a lack of certainty in distinguishing between capital and deductible expenditure.  In addition, there is no specific provision that addresses the deduction to be allowed for repairs and maintenance.


In addition, over the last 7 years there have been a number of changes to the treatment of expenses on existing “buildings”.


The course will clarify the income tax treatment of expenditure on existing capital items, including a review of:

  • The tests established by the courts to distinguish between capital and revenue expenditure
  • The process developed by the courts to determine the deductibility of repairs and maintenance expenditure
  • The relevant court cases
  • Repair of recently acquired assets
  • Expenditure on leaky homes
  • Earthquake strengthening expenditure
  • The treatment of demolition costs
  • The treatment of expenditure on existing buildings

In each area we will review the law and its application as well as a working through practical examples to illustrate that issue.


Upon satisfactory completion of this activity you will be able to:

  • understand the rules and principles better
  • identify relevant tax issues
  • have a greater awareness of tax implications in each of the areas

Suited to:


This course will be suited to intermediate through to advanced accountants in public practice who are dealing with SMEs. It will also be suitable for corporate accountants of SMEs.


PRESENTER


Mike Hadwin, Director, Symmetry Advisory


Mike is a regular presenter for TEO Training. You’ll learn from Mike’s 30-plus years of tax experience as a public CA and facilitator. His clear presentation style enables you to quickly understand and apply practical learning concepts to common situations you may face in your role.