News
Five rental properties a business: IRD
Monday 8th of October 2012
That’s the finding of a case taken to the Taxation Review Authority, in which a self-employed artist had her rental losses disallowed.
They had been used in calculating a Working For Families entitlement.
The properties were bought between 2003 and 2007 with high loan-to-value ratios.
The TRA had to determine whether her rental investments amounted to a business. Losses incurred from a business cannot be taken into account when determining Working for Families tax credits.
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