10. For which of the following expenditures is an input tax credit not available for GST purposes? Assume all taxpayers are registered persons.
(a) The cost of a new deck at Jeffrey’s house that he rents out to residential tenants.
(b) Replacing the microwave in the office kitchen at Jill’s office premises.
(c) The cost of patenting a new invention with NZ government.
(d) The legal costs of $11,500 incurred by Limited Ltd when buying a new piece of machinery from an overseas manufacturer.
Answer-The correct option is (b) Replacing the microwave in the office kitchen at Jill’s office premises.
Not deductible: Since the expenditure is made for personal use, thus the same shall not be deducted for the purpose of Income tax
10. For which of the following expenditures is an input tax credit not available for GST...