Taxing matters provides a summary of topical tax and business information relating to individuals and business. This article discusses the deductibility of some common expenses for tax purposes.
Website Costs – For tax purposes, the costs of creating and/or upgrading a business website are classed as capital expenditure and should be capitalised and depreciated. The ongoing costs incurred when maintaining an existing business website are deductible.
Combined Business and Holiday Travel - If travel is part business and part holiday (in NZ or overseas), the IRD look at the dominant purpose of the trip to determine deductibility of expenditure. If the purpose of the trip is principally for business, the travel expenditure will be deductible with the exception of any expenses relating directly to the personal part of the holiday, which will not be deductible. Conversely if the purpose of the trip is principally for personal pleasure, then the travel expenditure will not be deductible with the exception of costs directly incurred in carrying out business activities.Details