Tax deductibilty of seminars

[Viv]

From all I've read and heard, it seemed to be common practice to claim books, seminars etc as an expense against rental income. My accountant has pointed out this year that if the IRD audited, they might claim that these expenses are not directly related to the properties I already own, and claw back the amounts plus penalties. The seminar expense is high ($6000, being wife and myself on 3day course). I could argue my case with the IRD if it came to it, but does anyone win arguments with the IRD?
I obviously would like to use the deduction if possible, but want to stay on the right side of the IRD. Has anyone had any experience/insight they would like to share on this?

Viv

[cube]

No throughts or experience, but training within any industry is essential. In IT, that may be the $100 cost of a book, but it is also (frequently) several $000s for learning the latest technologies - not part of a current 'project', but essential to the future of the organisation.

That's what I'd argue with the IRD, anyway!

cube

[Perry]

My accountant has pointed out this year that if the IRD audited, they might claim that these expenses are not directly related to . . .

Did you ask the accountant for reasons?
If so, what were they?

[Viv]

He said they (IRD) may argue that these expenses were nothing to do with the business of generating rental income from existing properties; rather it could be seen that they apply to acquiring future properties which would then amount to setup costs...

Viv

[Perry]

He said they (IRD) may argue that these
expenses were nothing to do with the business of
generating rental income from existing properties; rather
it could be seen that they apply to acquiring future
properties which would then amount to set up costs...

My initial reaction is that you need a new accountant.
One that's working for you, as well as billing you. The
current one sounds like he's billing you and working for
the IRD.

A moment's reasoned appraisal will show the falsity of
the accountant's "reason." The flaw lies in "the business
of generating rental income from existing properties."
You are in the business of generating rental income from
rental properties, past, present and future.

If you are in the business of being a property investor,
with an existing portfolio and a plan to expand it, it is
fatuous to try and link any expense you generally incur in
relation to the business activity of being a property
investor, to one or several specific properties, present or
future.

Just as income is pooled from your rental properties, for
tax purposes, so are expenses. I.e. your accountant
doesn't file a separate tax return for you, for each of your
properties.

Yes, the more I reflect, look around for a new accountant.