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New Zealand law explained for everyone

Income Tax Act 2007

Deductions - Expenditure related to use of certain assets

DG 1: What this subpart does

You could also call this:

“This subpart explains how to calculate tax deductions for mixed-use assets”

This part of the law explains how to handle expenses for things you own that you use both for making money and for personal reasons. It also covers what happens when you’re not using these things for a while during the year.

You need to figure out how much of the expense you can claim as a deduction on your taxes. This depends on how much you use the item for making money versus personal use. The rules also take into account times when you’re not using the item at all.

These rules apply to expenses you have in a single tax year. They help you work out what portion of those expenses you can deduct from your income when you do your taxes.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM5494502.

Topics:
Money and consumer rights > Taxes
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DG 2: Application of this subpart, or

“This section explains how to apply specific tax rules for different types of property and expenses”

Part D Deductions
Expenditure related to use of certain assets

DG 1What this subpart does

  1. This subpart sets out the rules for the deductibility and apportionment of expenditure incurred for an income year in relation to an asset when the asset is used partly for income-earning purposes and partly for private purposes, and for a time during the income year, the asset is not in use.

Notes
  • Section DG 1: inserted (with effect on 1 April 2013 and applying for the 2013–14 and later income years for an item of property referred to in section DG 3(2)(a)(i), and for the 2014–15 and later income years for an item of property referred to in section DG 3(2)(a)(ii) and (iii)), on , by section 30(1) of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).