Posted 26 Sep 06

Watch out for wrongly claimed expenses - a red rag to our friends at the IRD. There is a widespread misconception that "farm" type clothing is tax deductable. This is completely wrong as only protective clothing is deductable - steel capped boots, gumboots, leggings, aprons, wet weather gear (perhaps stretching to a swandri jacket), safety goggles, earmuffs, hard hats etc qualify under this rule. "Farm" clothing such as socks, jeans, work jerseys, swandri shirts, caps and hats, glasses and sunglasses are all non deductable - both for income tax and for GST. Be careful out there!
Prepared by Ian Stewart, Farm Accounting & Taxation, P Bag 47900, PONSONBY. email istewart@farm-accounting.co.nz Ph 09 3764894 Fax 3786682