Nigel is a professional percussionist and performs with a number of bands and orchestras. In order to practice, he set aside a special room in his house that is soundproof and contains a variety of electronic sound equipment. The room is used only for practice or performance related purposes. He pays council rates, interest on the house mortgage, repairs and maintenance, electricity and telephone expenses in connection with the house. He believes he should be able to claim tax deductions for all these costs together with depreciation on the room and equipment.
Explain the tax position to Nigel. In you answer you should:
This question belongs to income taxation law and discusses about tax issues that are raised in a percussionist case and expresses a conclusion.
Total word count: 1038
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