Claiming tax for repair work carried out
Question from Mary updated on 18th November 2010:
Our expert Mark Withers responded:
I believe this type of money go round is futile. The deduction for the work is equally income to you so the tax outcome is neutral. ie it is a circular transaction that just creates unnecessary paperwork. You could also really end up with egg on your face if IRD took the view that the work on the property was capital improvements and therefore non deductible but still required you to pay tax on the income. I'd say don't go there.
Mark Withers and his team at Withers Tsang & Co specialise in advising on property related transactions, valuation and restructure services and tax planning.