Claims for new furniture and telecoms supplied to employees working from home

Inland Revenue will permit a maximum one off claim of $400 for all purchases of office equipment and a further maximum of $400 for all telecommunications equipment.

Alternatively, there are reimbursement options:

  • If the equipment is used exclusively for business, the reimbursement to the employee can be 100% of the annual depreciation.
  • If the principal purpose of the piece of equipment is for business use, then no more than 75% of the annual depreciation can be reimbursed exclusive of tax.
  • If the principal use is for private purposes, then no more than 25% of the annual depreciation can be reimbursement exclusive of tax.

If an asset costs $1000 or less, the reimbursement can be paid in full, just as the asset can be treated as a 100 percent deduction in the year of purchase by the employer.

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