Income Tax: Deductibility of Home Office Expenses
Recent Law, p. 277, 1978
3 Pages Posted: 18 Dec 2009 Last revised: 11 Jul 2011
Date Written: Febuary 1, 2010
Abstract
CIR v. Banks (1978) 2 NZLR 472 considered the issue of deductibility of home office expenses. Richardson J rejected the Australian approach, which holds that if the initial capital outlay was made for private purposes, the fact that the property is later used for income-producing is immaterial. He held that the nature and use of the property in the income year must be considered to determine whether there is the necessary relationship between the expenditure and the income related activities.
Keywords: Income Tax, Deductibility, Depreciation
JEL Classification: K34
Suggested Citation: Suggested Citation