Tax deduction for BUSINESS clothing

We have been asked about tax deductibility of suits and shoes worn for business by real estate agents.
This article identifies the relevant pieces of legislation, summarises it and then applies to a particular case (a realtor in this case) at the end.

Legislation
New Zealand, does not have the most liberal tax laws when it comes to making claims for work clothes. Australia is more generous with this side of the legislation.

NZ Tax Law and the IRD have a very narrow definition of " work clothing" that would be deductible for tax purposes.
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The main thing that limits your claims for work clothes as a business expense are sections DA1 and DA2. In particular, these two sections of the Income Tax Act 2007 (ITA 2007) work together to highlight and limit all claims that can be made for business expenditure, including work clothes.

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