Tax return - computer related expense

[kipkip]

I have been using my now 10 year old computer solely dedicated to handle everything related to my IPs. I have recently replaced the monitor as the old one was broken.

Would I be able to claim this as an expense when filing tax return?

Thanks.

[artemis]

Yes. Suggest make a note on the invoice that it was for xy computer, used solely for IPs.

You may find it useful to read the IRD booklet Rental Income that tells you what you can claim.

[kipkip]

Thanks. That's what I thought too. It seems like my accountant didn't consider it that way.

[Rosco]

Hi Kipkip,

100% would be unusual. Most people use there computer some for their paye job, some for rentals and some for private. But if you are 100% rentals, then you would look at whether an expense or asset

I'm guessing under $500, so therefore a repair. If 17/3/21 or after, then threshold is $5,000

Ross

[kipkip]

The nature of my day job means our work pc are monitored with reports generated and shared with management, personal use is not allowed.

I can handle most things with my tablet, but just painful to print/scan documents, read inspection reports, working in excel and use the council GIS map for researching potential IPs. Hence converted an old pc that is not powerful enough to do anything else to cover this gap.

Got the monitor really cheap as it was discontinued, so no biggie whether can claim tax, but got curious as to how these things are being handled. Now I am wondering the view from IRD on mixed use home office with more people working from home, and started to also utilize the setup for rentals related activities.

[Rosco]

Home office - if an employee can't claim any working from home. But employer could reimburse, and that reimbursement is tax free. There is some good information on IRD site, and payments your employer can make to you tax free.

Rental - yes can claim a portion, but if office is used some personal, some for your paye job and some for rental, the deduction will be quite small. Based on size and then percentage use. ie if you have 10m2 out of 100, that is 10%, and then if you use 20% for rentla, then over is 2% of your rates, insurance, interest, repairs , power and other home costs.

Ross