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Posts in Taxation
Costs Deductible When No Income Following Earthquake

I have a client who leased a motel then the Kaikoura earthquake happened and the motel needed repairs done to it before being able to open again. The landlord has not done any of the repairs in the 2019 income tax year, and therefore there has been no income. The client has still incurred costs such as legal bills fighting the landlord (they are currently in arbitration), insurance, accounting, rates, storage, depreciation etc. Are they still able to claim these expenses when there is no income for the year due to landlord not doing the repairs?

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Tax Value of Property Transferred to Inheritance Trust

A deceased individual owned a share in a limited partnership which owned forestry. We are aware that an exemption applies, which allows the transfer to the beneficiaries if they are within the second degree, to be at tax book value. In this case the deceased's children have inheritance trusts (set up as part of the will) which are the beneficiaries of the interests in the limited partnership. Do the inheritance trusts qualify for the exemption?

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