Claiming GST On Second Hand Goods

If you purchase secondhand goods for use in your business from someone not associated to you (eg not a family member or relative) - these can be claimed for GST purposes. Examples are things such as vehicles and trading stock. However  there is a restriction on secondhand goods claims if your purchase goods from an unregistered associated person. No GST input tax may be claimed if the associ... More

Topics: GST Stock Record Keeping Vehicles Guides

Posted 8/10/2008 – Updated 23/09/2014

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Claiming GST On Second Hand Goods

If you buy an asset (such as a business vehicle or tools) from a person who is not GST registered (and you are), you can claim GST in your GST return as a second hand goods claim. However you do need to keep a note of where, who from and when you made the purchase – where possible it can be wise to ask the seller to sign a note saying you’ve bought the item from them. More

Topics: GST Record Keeping Guides

Posted 8/10/2008

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What Do I Pay Income Tax On When I'm In Business?

When you operate a business, each year you are required to prepare financial reports showing all of the business income and expenditure incurred which will result in an overall net profit or loss for the year. If your business makes a profit you will pay income tax on this profit in your income tax return – if you’ve got wages income as well the profit will be added to this and you wil... More

Topics: Income Tax Business Tax Compliance

Posted 8/10/2008

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Do I Have To Pay Tax On My Home If I Sell It?

If you have a property that is your family home this is excluded from the income tax rules, so there is no tax payable on the sale of it. However if a person has a regular pattern of acquiring and disposing of, or building and disposing of dwellings (which are their family home) income tax will likely be payable. A regular pattern would need to be more than 2 or 3 times. More

Topics: Tax Compliance Family Home Guides

Posted 8/10/2008

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What Is Stock On Hand?

Stock on Hand is accounted for at the end of each financial year. The reason this is included is because the purchase of goods has been claimed for but you haven't sold the stock yet - it is still available for sale. This stock on hand has the effect of increasing the profit for the business (to offset against the purchase expense). However Inland Revenue allow businesses with less than $10,000 s... More

Topics: Stock Guides

Posted 7/10/2008

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Reasons To Use A Tax Agent Instead Of Doing Your Own Tax

Using a tax agent to prepare your business or rental property accounts and returns will ensure your returns are correctly calculated and prepared and will make sure you are saving as much tax as possible. Also accounting costs are deductible as a cost, where as if you do it yourself and end up paying more tax than necessary – the tax payments aren’t deductible! More

Topics: Tax Agents Kiwitax News

Posted 7/10/2008

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Borrowing Money To Pay Tax Bills

If you are in business and are unable to pay your tax bills out of your normal cashflow – borrowing money to pay tax could entitle you to claim a deduction for the interest payable on the loan. So keep all loan statements should this occur. More

Topics: Income Tax Loans Tax Compliance Guides

Posted 7/10/2008 – Updated 3/09/2014

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Using Your Home As Your Office

You are allowed to claim a proportion of your home costs for running your business from home. The percentage claimable is worked out based on the area of your office divided by the area of your home - for example say your office is 15sqm and your home is 100sqm then 15% of your costs are claimable. So keep all of your home costs, invoices and statements including rates, power, mortgage interest, r... More

Topics: Claimable Expenses Business Record Keeping Tax Compliance Family Home Guides

Posted 7/10/2008

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Advertising / Commission Costs When Selling a Rental Property

If you pay costs to advertise the sale of your rental property, these are not claimable as a cost but will come off the sale price once the property is sold. This is the same for commission paid to an agent when selling the property - it will reduce the sale price. More

Topics: Claimable Expenses Rental Property Tax Compliance

Posted 7/10/2008 – Updated 23/09/2014

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What Is An LAQC And Why Use One?

Important: from 1 April 2011 LAQCs will cease and a transition to alternative registrations and / or structures will need to happen. An LAQC is a normal limited liability company registered with IRD as a loss attributing qualifying company. The reason people use an LAQC is that rental properties often run at a loss - the owners have to use some of their wages to top up the mortgage payments or ot... More

Topics: LAQC

Posted 6/10/2008

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What Is Depreciation On A Rental Property?

[Update: Please note depreciation is not allowed on buildings now] Depreciation is the devaluation of your rental property building at a small percentage per year – this becomes a cost like rates, interest etc and makes your overall loss bigger – which equals better tax refunds. When you come to sell the property or move into it yourself, the sale price/current value is accounted for ... More

Topics: Claimable Expenses Rental Property Depreciation

Posted 6/10/2008

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Repairs On a Rental Property - Are They An Expense Or Improvement?

You are only allowed a deduction for repairs and maintenance where the expenditure is required to maintain an asset in the condition it was initially acquired. If you add something extra to the house – this is likely to be an improvement and claimable for depreciation only. More

Topics: Claimable Expenses Rental Property

Posted 6/10/2008

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LAQC Rental Property That Is Your Family Home

Important: from 1 April 2011 LAQCs will cease and a transition to alternative registrations and / or structures will need to happen. Some people have setup an LAQC company to own their own home and then pay rent back to the LAQC and claim tax deductions for the expenses. IRD are very clear that it is tax avoidance – so don’t do it! More

Topics: LAQC

Posted 6/10/2008

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Changing Your LAQC Shareholding?

Important: from 1 April 2011 LAQCs will cease and a transition to alternative registrations and / or structures will need to happen. Here's one to keep in mind for Loss Attributing Qualifying Company owners. If for any reason you're making changes to the shareholding (ownership) of your LAQC you may be at risk of losing your LAQC status. The following two situations apply: If the same sharehold... More

Topics: LAQC

Posted 6/10/2008

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Changing Your LAQC Shareholding?

Important: from 1 April 2011 LAQCs will cease and a transition to alternative registrations and / or structures will need to happen. Here's a one to keep in mind for Loss Attributing Qualifying Company owners. If for any reason you're making changes to the shareholding (ownership) of your LAQC you MUST notify Inland Revenue of the changes at the time this is happening (within 63 days to be exact... More

Topics: LAQC

Posted 28/08/2008

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