The Master Tax Guide, New Zealand’s most popular tax handbook, is a concise and coherent explanation of the legislation, cases Inland Revenue rulings and policy affecting the 2021-2022 and future tax years.

New and proposed changes covered in this edition include:

• significant reform of the interest deductibility changes for residential rental properties
• extending the bright-line test from five years to ten years and changes to the main home exemption
• a new set of rules governing purchase price allocations for sale and purchase agreements entered into on or after 1 July 2021
• various COVID-19 relief measures
• expansion of the “regular pattern” restrictions in the main home, residential and business premises exclusions
• changes to the minimum family tax credit threshold for the 2021–22 and later tax years
• clarifying the deductibility of the cost of revenue account property
• the new business continuity test for carrying forward losses
• two new specific deductibility provisions for feasibility expenditure
• aligning the tax treatment of certain IFRS leases with the accounting treatment.