Reference no: EM132213274
Quesiton: As per New Zealand taxation law-
Which of the following is a taxable activity?
(a) Renting out a small commercial building in Napier for $52,000 per annum.
(b) Renting out a residential house in Ponsonby, Auckland for $62,400 per annum.
(c) Lending $500,000 on a mortgage on a house for $27,000 interest per annum.
(d) Selling a house which you have inherited from your mother's estate for $800,000.
Which of the following transactions is fully deductible as a business expense in the year ending 31 March 2018?
(a) Legal costs of $18,600 for purchasing a new business.
(b) Legal costs of $7,600 relating to collecting doubtful debts.
(c) Costs of $8,300 for adding a new deck and barbeque area to a residential rental property.
(d) Costs of $10,000 for a fine imposed by government for breaching a resource consent and dumping toxic waste.