Summary of ruling

• The Applicant’s main business is real estate management.
• The Applicant has been claiming Industrial Building Deductions since 2010 in addition to deductions claimed under Section 22 of the Income Tax Act.
• The Applicant was in a loss-making position for the year ended 30^th June 2022.
• The implication of Section 22 (1) (c) of the ITA is that a person who has rental income for a year of income is allowed to claim 50% of the expenditures or losses that are of a revenue nature against their rental income provided that those expenditures or losses were incurred in the year in which the rental income was generated.
• Section 5 (3) of the Act states categorically that only those expenditures and losses provided for in Section 22 (1) (c) are allowable as deductions. Hence, items such as IBD are deductible only to the extent that they meet the criteria provided for under Section 22 of the ITA.
• Application dismissed.