R & M or Capital?

The focus of this course will be on buildings and fit out. In addition, the rationale can be applied to any fixed asset when considering the question: is this a repair or an improvement?

This webinar will also work through how the changes surrounding depreciation can help us with the wider question of whether a claim for expenditure can be made as repairs or maintenance or not? (Note: this course will not look at depreciation issues or whether the building is acquired on capital or revenue account.)

This course will also cover a variety of cases on capital versus revenue and repairs or maintenance. Learn guidance on what is deductible at the time of incurring the expense and what must be capitalised to the cost of the asset.

There has been remedial legislation introduced as a result of the removal of depreciation on buildings that helps us identify "the asset", which then enables us to work through whether our expenditure is in relation to a repair to that asset, or whether it becomes an improvement. Further, the IRD has issued interpretation statements on what is a commercial and residential fit out, which also helps us more clearly identify "the asset".

This course will cover:

• Capital vs revenue distinction
  The different tests by the courts to determine between capital and revenue expenditure
• Repairs and maintenance
  The process developed by the courts to determine the deductibility of repairs and maintenance expenditure
• Repair of recently acquired assets
• The treatment of demolition costs
• IRD position on repairs and maintenance expenditure
• The treatment of expenditure on existing buildings

In each area we will review the law and the IRD's position as well as working through a practical example to help illustrate the issues and find the elusory line in the sand.

Click here to download the course paper contents page

• The differences between capital and revenue expenditure
• The process to determine deductibility of repairs and maintenance expenditure
• The position of the courts and the IRD on the issues
• How to treat expenditure on existing buildings

Watch On-Demand
This course is an On-Demand webinar. You will receive a recorded webinar and an electronic copy of the course book and notes. You can watch the webinar whenever suits, and can watch it multiple times.

Presenter
Mike Hadwin, Director, Symmetry Accounting is a skilled tax presenter. He will help you understand a wide vairety of tax issues and the practical implications for everyday small to medium sized businesses. You will learn from Mike's 20+ years of tax experience as a public CA and facilitator. His clear presentation style enables you to quickly understand and apply practical learning concepts to common situations you may face in your role.