Covid -19 and Exciting Events at Tax and Trust
Alert Level 4 – again
You will be well aware that we have gone into another level 4 lockdown. What does that mean in terms of our service to you?
We are still hard at work on your accounts. All appointments will now be held by phone or Zoom – rest assured all Zoom appointments are secure using a password to log in.
COVID-19 resurgence support payments
In relation to this current lockdown we understand that if it is Level 3 or 4 for 7 days or more there is the following Covid support payments available:
1. Wage Subsidy – drop of 40%, $600 per week per full time employee and $359 per week per part time employee.
2. Resurgence Support Payment – drop of 30%, being a RSP of $1500 plus $400 per full time equivalent.
3. Leave Support Scheme – for workers who must self-isolate while awaiting a test. $585.50 per full time worker and $350 per part timer.
Available to claim from Friday 20th August.
We can help any of you who are unsure, there will be an extra charge only for the time involved in helping you receive what you are entitled to – $125 + GST per claim. We will do the paperwork to support the claims, should they later be audited. If you don’t yet qualify on Friday we will try again in 7 days and keep in touch with you about the results.
This offer is only for businesses with 3 or less employees if you have more than this please contact office@taxandtrust.co.nz. Your charge would be based solely on time taken.
Planning for Success Workshop Series
Workshop 9am – 1.30pm with breaks every hour of 10-15 minutes.
This workshop will focus on:
- What is “backbone with heart”?
- Digital Marketing – Stay ahead in your marketing
- Habits of highly effective business people
- What is a KPI and why should you know them?
- One new and valuable Xero feature
- 90 day Action Plan – what are the 3 rocks you are going to focus on next quarter?
Get expert advice from our guest Speaker Tom from Trigger Digital.
With an open, honest approach and his genuine interest in customers and their businesses, Tom is highly valued by his large network of contacts all over New Zealand, Australia and the South Pacific.
Working with owner/operators, understanding how busy their lives are and just what is needed to make the right wheels turn for their digital business is his passion, and he brings to the table an invaluable depth of understanding about the challenges faced by this sector of the business community.
This segment will cover all the digital basics needed to ensure that you stay ahead in the game. We will wrap with a Q&A session where you can get all of your questions answered.
Which capital gains are tax free?
New Zealand does not have a capital gains tax.
However, some capital gains are taxable. These include the gains made on some property sales, and sometimes on the sale of shares and other assets.
Rather than listing which gains are taxable, it’s simpler to tell you which capital gains are currently tax free:
Profits when you sell your home
Let’s assume that you live in your home full-time and you’re not a property trader. When you sell your home at a profit, that gain is not taxable. Gains on the sale of an inherited property are also tax-free, and the same applies if you are selling a house as the executor of an estate.
Talk to us about the sale of your home, to check this general advice is true for you before you sell?
Profits when you sell other properties you’ve owned for more than 10 years
Once you’ve owned an investment property for more than 10 years, you won’t pay tax on any profits you make when you sell it. This includes a rental or a family holiday home. If you bought the property before 27 March 2021, the bright-line time limit may be shorter: zero, two or five years, depending on when you purchased it. You can read more about the bright-line test here.
ALWAYS Talk to us about the sale of your investment property, before you list. With the new legislation that is proposed – there are many important details with hidden fishhooks. The money and tax involved can be huge, please ask about your specific situation looking for tax advice before you list.
Profits on the sale of shares you’ve purchased for an income
If you bought your shares to make an income from them, rather than with the intention to sell at a profit, any gains you make when you sell shares are not taxable. However, tax will apply if you are deemed a trader by Inland Revenue – this can be tricky, so definitely get advice when you’re buying and selling shares regularly.
Profits from the sale of your business
When you sell a business, the profit you make is not taxable. However, there may be depreciation recovered which is taxable.
It’s complicated!
Unfortunately, under every one of these categories, there are plenty of hidden fishhooks. For instance, intention may be important, so you need to be clear about your intentions when you buy or sell shares or a home. Whether you rent for short-term or long term. Whether it was bare land, commercial and residential – all have different treatments in this new proposed legislation.
Tax is a complex topic. Don’t be caught out by making avoidable mistakes.
Register for our free webinar now! August 25th 12pm-1pm. This webinar is suitable for all property investors in particular and will help explain some of the fishhooks, from the proposed legislation.
See the recording here.