Allowable Deductions

Question 1

What is the general permission?

Answer 1

Deduction for loss expenditure if:

• In Deriving assessable income
• In the course of carrying on a business for the purpose of deriving assessable income

Question 2

What does in nexus with assessable income mean?

Answer 2

Direct connection to income
OR
An outlay of persons business

Question 3

What is the private limitation?

Answer 3

Denied a deduction for expenditure that is private or domestic in nature.

Question 4

What is the exempt income limitation?

Answer 4

Denied deduction for expenditure that is incurred in deriving exempt income

Question 5

What is the employment limitation?

Answer 5

Denied deduction for expenditure incurred from deriving income from employment

Question 6

What is the withholding tax limitation?

Answer 6

Denied a deduction for expenditure incurred from deriving non-resident passive income (NZ Sourced income of a non-resident)

Question 7

What is the capital Limitation?

Answer 7

Denied deduction for expenditure that is capital in nature.