Business or Personal?
Three questions. We tell you what IRD will likely accept as claimable — and how much of it.
More work than play. Claim the business portion — keep evidence of the split.
How often do you use it for paid work?
Would you have bought it if you weren't running a business?
Your best guess — what % is for business?
Nexus — does it actually help you earn?
Nexus is tax-agent speak for "a clear connection between the expense and the money you earn." In plain English: if buying it helps you do paid work, it has nexus and you can probably claim it. If it doesn't, you can't.
Rule of thumb: if you'd struggle to explain the connection to your mate at smoko, you'll struggle to explain it to IRD too.
Show your working
- · Keep receipts (GST invoices if you're registered).
- · For vehicles, run a 90-day logbook every 3 years (IRD-approved).
- · Mixed-use phones / internet: pick a fair % and stay consistent year to year.
- · Entertainment (food, drink, hospitality with clients) is generally only 50% deductible.
- · If you're guessing, write it down — a defended estimate beats none at all.
Picking a fair business % is half art, half evidence. Our $75/mo Growth plan reviews these calls every month so you're not making them alone.
Get expert eyes on thisNot sure? We're sure for a living.
Determining what's deductible is literally our job. If you're guessing on more than a couple of expenses a year, an accountant probably pays for themselves.