NZ Inland Revenue Department - Treatment of Contract Pilots
I am a Contract Pilot and a New Zealand resident.
Recently, I departed from regular employment and set up as a sole trader - Contract Pilot. I self funded an aircraft type rating, to add to my tool kit.
I believe that the cost of the type rating is a legitimate business expense.
I am interested to hear from anyone who has been down this road before me. In particular, I ask the following questions;
1. Has anyone successfully offset the cost of the type rating against taxable income? If so, what mechanism was used;
(a) Expensed the cash amount?
(b) Claimed the interest on a loan?
(c) Capitalised the rating an depreciated it?
(d) Other?
2. Has anyone been unsuccessful in their endeavours and had the IRD dissallow their claim?
Please note that I have employed both an Accountant and a Tax Barrister for professional advice.
I consider the advice and experience of my professional peers, to be equally important.
I hope that the information gained through this thread will be of use to all pilots contemplating contract work.