New IRD Statement on Home Office Deductions

Did you know that you have the option of calculating the portion of your home office deduction that relates to utilities using a square metre rate prescribed by IRD rather than keeping detailed records of these costs? The square metre rate for utilities takes into account electricity, gas, home and contents, insurance, telephone, mobile and internet charges

If you elect this option you will 1) still need to quantify and apportion "premises costs" being mortgage interest, rent and/or rates and 2) not be entitled to deduct a proportion of other costs not included in the square metre rate.

Click on the link to access IRD's current operational statement OS 19/03 Square metre rate for the dual use of premises.

Alternatively, the home office claim can be based on actual costs as detailed at the following IRD link:

Please feel free to contact us to discuss it's application to you, if this is of assistance to you.