Running Business from Home

[macassar]

Hi all, what are the(if any) tax benefits from operating a business from your place of residence in NZ? In Australia there are a number of benefits-rent, power, part of the rates etc. can be payed out of the business to the owner of the residence(classed as income for owner). Anything similar in NZ?
Cheers and TIA.,
Macassar

[cube]

Hi,

Yes, allowances can be made for use of a home office, but it has to be a genuine office (not a bedroom with a desk) and the level of business has to justify the claim (running a single IP would not count, running 3 or more may) - as always, check with an accountant before the IRD checks on you!

Try www.homebizbuzz.co.nz for more info on home businesses.

cube

[macassar]

Thanks Cube, my partner runs her own graphic design business from home and we have had the 3rd bedroom converted to an office, so we are thinking if we relocate to NZ what are the things we need to factor in. So appreciate the advice and we will follow up with our bean counter in NZ.
Cheers
Macassar

[drelly]

It sounds the same to me. I've been working from home for years and even though I sometimes miss having a separate office, it's just not worth the added expense of commercial rent!