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  1. #1
    Join Date
    Jul 2005
    Location
    n
    Posts
    65

    Default Are these expenses deductable for tax purposes?

    1. Baycorp joining fee and fee for checking up candidate tenants
    2. APIA membership fee
    3. QUOTABLE VALUE NZ fee for checking potentially acquiring property values
    4. buying a book "Where to live in Auckland" for learning about the property rental market, as well as some other books with similar purpose.
    5. Hybrid Group Property Clock / information subscription
    6. Setting up a PO Box for my LAQC


    All appreciate anyone's answer
    //----------------------------------------------------

  2. #2
    Join Date
    Feb 2004
    Location
    North Waikato
    Posts
    651

    Default

    In the context of a business, I can't see why they aren't legitimate expenses (but I'm not an accountant).


    John

  3. #3
    Join Date
    Jun 2005
    Location
    auckland New Zealand
    Posts
    5,236

    Default

    Are they deductible? As long as you are in the business of property investment absolutely 100%!!

  4. #4
    Join Date
    Jan 2004
    Location
    Whangarei
    Posts
    5,867

    Default

    nfung...

    If you've paid to join the Auckland Property Investors' Association, you can join Baycorp for free.

    cheers,
    Dave.

  5. #5
    Join Date
    Sep 2004
    Location
    Hastings
    Posts
    15,418

    Default

    Although it's unlikely to be contested, a 'permanent' item
    like a book has been treated by IRD as a capital expense,
    rather than a revenue expense. Most all forms of subscriptions,
    including a PI magazine, are a revenue expense and deductible.

    In the event that a book - part of an enduring library - is
    treated as a capital expense, it can be depreciated. For
    the life of me, I've no idea what the rate is, though.

  6. #6
    Join Date
    Oct 2003
    Posts
    3,578

    Default

    Perry - Correct but it is unlikely you would buy more than $200 worth of books at a time, in which case you can expense (amount increases to $500 at some point).

    Big corporates have an issue with this but the small time investor should be able to spread out there purchases.

  7. #7
    Join Date
    Apr 2005
    Location
    Auckland / Cappadocia, Turkey
    Posts
    2,312

    Default

    Just got a draft back from my accountant for my first return. He has treated everything in your list as an expense (except PO Box, which I don't have for the purpose of my LAQC, so can't comment on that one).

    He treated the book as a 'Printing and Stationery' expense.
    Lisa

  8. #8
    Join Date
    Jul 2005
    Location
    n
    Posts
    65

    Thumbs up Thanks heaps!!! Great info.

    All of you are wonderful with those helpful info. Save my life time chasing answers with accountant and IRD.
    //----------------------------------------------------

  9. #9
    Join Date
    Apr 2005
    Location
    Auckland / Cappadocia, Turkey
    Posts
    2,312

    Default

    Quote Originally Posted by nfung
    Save my life time chasing answers with accountant and IRD.
    Hey nfung,

    If in doubt, and if you are getting your accountant to do your return for you, I would include everything that you think is a valid expense. Then let the accountant decide.

    I did this, then made a list of the items for him that I wasn't certain about, eg:

    - expenses that I was uncertain whether or not they would be considered legitimate
    - expenses incurred BEFORE setting up LAQC or buying property
    - items that I wasn't sure whether they would be considered Repairs&Maintenance or Assets

    By including everything for the accountant, the hard work is done. By highlighting the questionable expenses, it's easy for them to quickly identify ones that need to be removed or shifted around to another expense category.

    In the end, he allowed expenses that I thought he may have removed. Cool!
    Lisa

  10. #10
    Join Date
    Jul 2005
    Location
    n
    Posts
    65

    Wink Thanks Lisa

    I am doing it by myself.
    //----------------------------------------------------


 

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