Deductions on home businesses

Deductions on home businesses

Self-employed individuals (contractors, sole traders, partnerships, or company owners) running a business from their home can claim the parts of their home used for business as an expense. Any space in your home that is primarily used for the purpose of running your business can be claimed. This may include certain rooms such as a…

Broader refundability of RD tax credits

Broader refundability of R&D tax credits

Businesses that have been impacted by COVID-19 may be finding it difficult to continue their research and development (R&D) plans on track. As part of the Government’s COVID-19 economic response, more businesses carrying out eligible R&D activities may be able to access a refund of their R&D tax credit with increased leniency. The R&D tax…

Taking advantage of the new building depreciation deduction claims

COVID-19 Impacts on the Airbnb Market

GST impact on Airbnb style rentals On the back of a booming tourism industry, the expansion of Airbnb throughout New Zealand in recent years has been prolific. The combination of being able to derive great returns while maintaining control and flexibility of your property has seen a boom of properties listed on Airbnb and similar…

COVID and tax for the self employed

COVID-19 and tax for the self-employed

As part of their COVID-19 response, the IRD has introduced a number of measures aimed at alleviating the financial pressure on those who are self-employed. Tailored tax rates and exemptionsSelf-employed workers who have had their income significantly affected by COVID-19 and no longer fit in their current withholding rate can apply for a tailored tax…

COVID tax relief for businesses

COVID-19 tax relief for businesses

The Inland Revenue will provide all New Zealand-based businesses struggling to pay their taxes due to COVID-19 with various forms of tax relief. Here’s a breakdown of the key relief strategies applicable to your business during these tough times. Penalties and interest write-off:Businesses unable to pay their taxes on time due to financial strain caused…

31 March Tax Planning Guide

31 March Tax Planning Guide

With 31 March approaching, now is the ideal time to consider tax issues and, where available, planning opportunities. Key matters are outlined below. □ Bad Debts To claim a tax deduction, the debt must be: o Bad; and o Physically written off on or before balance date. The above rules mean you must be able…

Deducting holding costs for privately used land

Deducting holding costs for privately used land

Inland Revenue released a consultation document in October 2019 regarding the deductibility of holding costs for private uses. Holding costs are expenses including interest, insurance, repairs and maintenance. The document proposes three options for the treatment of holding costs for periods when land is used privately: Apportion the holding costs between private use and the…