Personal tax deductions – are there any left?
If you are on a PAYE salary, the number of expenses you can claim is rather limited but there are still some that are worthwhile.
The fees charged for preparing your personal return are fully deductible.
A donation to a charity is deductible. You can claim back 33% of the amount of any donation to an approved charity in excess of $5. You use an IR526 form to do this or we can do this for you as we prepare your other returns. You need to keep your receipts. The receipt should state the amount and date of the donation, the name of the charity and a statement that it is a donation.
The type of charities include:
- approved donee organisations
- approved religious organisations
- university and medical research
- kindergarten associations
- state and state-integrated schools (there are some exceptions so check with us first)
Income Protection Insurance
The premiums for your income protection insurance are almost certainly deductible.
If you have borrowed money to invest in assets like shares, the interest on this borrowing is deductible.
Portfolio Management Expenses
If you pay someone to manage your portfolio of investments, these fees are commonly deductible.
It’s worth claiming for any or all of these expenses. If you are on a PAYE salary, you’ll get a welcome refund from the IRD. This advice is by its nature general and your individual circumstances may differ so contact us if you are unsure. We are happy to help.