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Income Tax Act 2007

Deductions - Attributed losses from foreign equity

DN 9: Treatment of certain costs incurred in acquiring FIF interests

You could also call this:

“Costs of buying certain foreign investments can't be deducted”

You can’t deduct the cost of buying a Foreign Investment Fund (FIF) interest if you earn income from it under section CX 57B. This rule is more important than the general permission to make deductions. This means that even if you would normally be allowed to deduct these costs, you can’t do it in this case.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS32746.

Topics:

Money and consumer rights > Taxes

DN 8: Ring-fencing cap on deduction: attributable FIF income method, or

“Limits on deductions for foreign investment fund losses”

DO 1: Enhancements to land, or

“Expenses for improving farmland that you can claim as deductions”

Part D Deductions
Attributed losses from foreign equity

DN 9Treatment of certain costs incurred in acquiring FIF interests

A person is denied a deduction for an amount of expenditure that they incur in acquiring a FIF interest from which income under section CX 57B (Amounts derived during periods covered by calculation methods) is derived.
This section overrides the general permission.

Notes

Section DN 9: inserted, on 29 March 2018, by section 51 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).