Ring Fencing of Rental Losses

Inland Revenue has released an ‘issues’ paper that proposes the introduction of a loss ring-fence for residential rental properties to apply from 2019-20 year if approved. Aim of the proposed changes The introduction of loss ring-fencing rules is aimed at levelling the playing field between property speculators/investors and home buyers. Currently investors (particularly highly-geared investors) have part of the cost of servicing their mortgages subsidised by the reduced tax on…  Read more

Extension of Bright-Line Test for Residential Property

From 29 March 2018, the bright-line test that is used to determine if you have tax to pay on the sale of residential property has increased from 2 to 5 years. If a person acquires a “first interest” in residential land (which generally is the date you entered into a binding unconditional sale and purchase agreement) on or after 29 March 2018 and sell it within 5 years, you’ll need…  Read more

A ‘pot pourri’ of topics

To claim or not to claim? Planning a summer business trip with a personal holiday tacked on the end? Renting out the bach and unsure what expenses can be claimed? Whatever your situation, we want to make sure you’re getting the expense claim tax break you’re entitled to. Here’s the lowdown on legal costs for trust admin, travel expenses, mixed-use assets and sponsorship.   Facing a legal bill for your…  Read more

Complying with the AML/CFT Legislation

Complying with the AML/CFT legislation If you have recently tried to start a new investment or open a bank account, you would have been required to prove your identity, location of residence, and perhaps proof of your source of funds. These requirements are all part of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (Act). This Act has now been widened (via the Anti-Money Laundering and Countering Financing…  Read more

What to do if you fall out with your business partners

It’s been said that a business partnership is a lot like a marriage, and the comparison holds true when things go awry: the end of a partnership is a lot like divorce. Lawyers will be involved and assets will need to be divided. However, a separation need not be overly dramatic or unnecessarily painful. These tips can help make separation easier – and more amicable – should your business partnership…  Read more

The Fringe Issue

THE FRINGE ISSUE Given the importance of keeping your PAYE and GST record-keeping and payments in order, it might be tempting to think that Fringe Benefit Tax, or FBT, is a relatively minor thing. But don’t be fooled. In 2017, Inland Revenue created a dedicated audit team to focus on this issue. One of the team’s aims is to ensure employers have the right business structures and documentation in place.…  Read more

Changes to Families Package

Changes to Families Package   If you receive the Families Package (formerly the Family Incomes Package), you may be affected by three changes coming on 1 July. They include: >  a Winter Energy Payment to help older people and low income families heat their homes >  a Best Start tax credit for families with young children >  increases to Working for Families tax credits Because the changes will be made…  Read more

Cleaning out the dirty money

Cleaning out the dirty money: New Legislation puts laundering in the spotlight   While New Zealand is hardly the money laundering capital of the world, we still see our share of shady activity.  Every year, around $1.35 billion of fraud- and drug-related money is laundered through legitimate New Zealand businesses. As you’ll recall, the Government has extended the reach of the Anti-Money Laundering and Countering Financing of Terrorism Act, From…  Read more

5 Common Bookkeeping Pitfalls — and How to Avoid Them

Although most entrepreneurs recognize the importance of careful financial management, few want to spend their time dealing with numbers, i.e. doing the bookkeeping. Unfortunately, not keeping a close eye on your income and expenses can be very costly for a business. Here are five of the most common bookkeeping pitfalls, and some simple tips for getting back on track. Mixing business and personal All too often, entrepreneurs adopt a “buy…  Read more

Your Bank for a Business Loan

How to obtain a loan is a common concern for a new business and those preparing to scale. Getting approved for a business loan or line of credit is more difficult than qualifying for a personal loan. It’s crucial that small business owners are adequately prepared to meet with a lender to present their business in the best possible light and qualify for the money they need. Here’s what you…  Read more

5 Ways to Save Money for your Business

Looking for simple ways to cut costs? These tips will help you make a noticeable difference to your bottom line. 1. Reduce staff costs Without a doubt, having someone to help deal with routine tasks can greatly improve productivity. The rub is that hired help is often too expensive for small business owners. Internships can be a real win-win: a student gets hands-on experience assisting you with marketing, accounting or…  Read more

The three most important financial reports

While many small business owners prefer brainstorming new ideas to pouring over financial reports, getting a handle on financial analysis can be remarkably empowering. Taking the time to regularly review financial statements can help you assess and improve current performance, avoid risk and make scalable plans for future growth. Protect your company’s financial health by learning your way around these three financial reports. Cash flow statement The cash flow statement…  Read more

The advantages of a business dashboard

Business dashboards are a valuable business intelligence tool, offering an “at-a-glance” big picture view of a company’s performance. Some business owners use a dashboard to track KPIs relevant to just one aspect of their business, such as sales growth, marketing, or financial data. Others rely on an executive dashboard for an overview of data culled from various sources (e.g. their accounting software, CRM tools, and website analytics). The great advantage…  Read more

Essential Tips to Help You Sell Your House Quickly

Once you’ve made the decision to sell your home, chances are you’d like to do it as soon as possible. While some houses sell almost as quickly as they hit the market, others sit for a considerable amount of time without generating any offers from prospective buyers. Fortunately, there are several steps that you can take to increase the odds that your house is in hot demand and sells quickly.…  Read more

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