If you’re in business, including self employed or working as a contractor, you may be able to claim expenses like your home office, your car, depreciation and environmental costs. Types of business expenses. If you own a rental property, you may have expenses related to its upkeep. Rental income and paying tax. If you are not in business, Businesses get taxed on their income minus any business expenses and other deductions. If you’re in business, including self employed or working as a contractor, you need to keep records of your expenses and income and understand what types of costs count as business expenses . You can claim some expenses related to rental income and property.
The expense will be 50% deductible even if you think the private element was more or less than 50%. Examples of this include: entertainment at sports or cultural events (for example, a corporate box) business use of a holiday home. hiring a boat, and providing food and drink to people on it.
You can keep track of the actual costs of running your vehicle and treat these as a business expense . You need to keep accurate records including details of private and work-related expenses . These expenses could be buying petrol, getting a Warrant of Fitness,.
100% of office supplies, eg paper and pens. 100% of new furniture under $500 an item — items over $500 must be depreciated instead. 0% of food and drink, unless you’re entertaining for work. 10% of internet costs, but you can claim more if you can prove you use more for business.
Using your home for your business, Claiming expenses on business trips — business.govt.nz, Entertainment expenses – Inland Revenue Department, IRD allow us to deduct 30% of a vehicle cost in the first year, $16,500 for Pete ($55,000 x 30%). However, Pete purchased the Lexus in the last month of the year so can deduct for that month only. He deducts depreciation of $1,375 ($16,500 / 12). If Pete is paying 33% tax,.
The square metre rate for the 2018–2019 income year is $41.70 per square metre. The square metre rate for the 2019-2020 year is $42.75 per square metre. More detailed information on using the square metre rate option can be found in Operational Statement OS 19/03, Square metre rate for.
The more expenses you can claim, the less tax you’ll pay. Business expenses can include: vehicle expenses, transport costs and travel for business purposes; rent paid on business premises — including your home; depreciation on items like computers and office furniture; interest on borrowing money for the business; some insurance premiums, promote your goods or services, eg offering food to entice customers to a stall at an expo. If the entertainment is helping you earn your income, it’s usually deductible when it’s time to work out your tax. Within New Zealand, entertainment expenses can be either.
Kia ora haere mai, welcome to the New Zealand Inland Revenue website. We collect most of the revenue that the New Zealand government needs to fund its programmes. We also administer a number of social support programmes including Child Support, Working For Families Tax Credits, and Best Start.
