Understanding Tax Deductible Expenses: Your Questions Answered

As a business owner, it’s important to know which expenses are tax deductible and which are not. We’re here to provide answers to some common questions.

1. Are work clothes tax deductible?

Only uniforms or safety clothing are tax deductible. Any clothing that can be worn for other purposes is not eligible for tax deductions.

2. What about my car?

Vehicle expenses incurred during work-related travel are tax deductible. If the vehicle is exclusively used for work, you can deduct all costs. However, if it’s also used for personal purposes, only a portion can be claimed. Remember, daily commuting to and from work is not considered a business expense.

3. Can meals be tax deductible during business trips or when treating clients?

Entertainment expenses have different deductibility rules. Some are 100% deductible, while others are only 50% deductible. To understand the specifics, refer to the guide provided by the Inland Revenue Department (IRD).

4. If I work from home, what can I claim for?

When you have a home office, you can claim a portion of various household expenses, including rates, electricity, home and contents insurance, and rent or the interest portion of your mortgage payments. The amount you can claim depends on the proportion of your house used for business purposes. We can assist you with this calculation.

5. What about subscriptions?

Payments made for work-related magazines, journals, or professional association memberships are all tax deductible.

6. Can I claim my mobile phone?

If you have a dedicated business phone, its expenses are 100% deductible. However, if you use it for both work and personal activities, only a portion of the expenses can be claimed.

For tailored tax advice, turn to us.

You excel in your small business, and we specialize in helping you navigate tax compliance. We’ll address your tax-related inquiries, allowing you to focus on growing your business. Get in touch with us today – we’re eager to assist you!

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Business Accountants: Understanding Changes in Residential Property Taxation

Recent years have seen significant adjustments to the tax landscape, particularly concerning residential property. The government has responded to calls from various quarters to address investor demand in this sector. Notably, recent changes have been initiated to reverse tax policies affecting residential property, aligning with promises made by both National and ACT during their election campaigns.

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