Historic test win for Black Caps ... More soon  IRD issues
guidelines  Last updated 13:17 11/09/2012 Taxing Times Fairfax
Media  Relevant offers  OPINION: A subject that creates debate
is whether expenditure on repairing and reinstating assets is
deductible, writes Murray McClennan in Taxing Times.  It is an
area where it can be difficult to determine the correct
treatment. It is tempting for taxpayers and their advisers to
classify expenditure, particularly on buildings, as repairs and
maintenance (and therefore deductible), rather than capital
expenditure (which is non-deductible).  Inland Revenue has
published an interpretation statement on the deductibility of
repairs and maintenance expenditure. The statement notes that
the courts have adopted a two-stage approach:  1. Identify the
relevant asset that the test of repair or replacement is being
applied to. Is the item being repaired or replaced part of a
larger asset, or is it a single asset? For example, is the
purchase of a new or reconditioned engine f