What to consider before filing your year end tax
Ticking items off your end-of-year tax checklist this month? Make sure you don’t forget income received from Covid-19 business support. A number of changes have come into affect that you need to consider.
What's different this year?
Interest deductibility on residential property
The new rules will see an interest denial on most taxpayers invested in residential property. This means taxable income derived from rental properties with a mortgage is likely to be higher in the 2022 tax year than it was in the 2021 tax year.
To ensure we get you the best possible tax position please provide us with as much detail about your rental property and the associated mortgage and interest payments for the 2022 year. Contact us if you are unsure on what you need to provide.
Covid-19 related support
Covid-19 wage subsidies and resurgence support payments are non-taxable. It is essential to keep accurate records of which staff member it was paid to or business expense it was applied to. It is also important to keep these detailed records in case the Ministry of Social Development asks to review your records down the track.
New rules for Trust compliance
New trust disclosure rules – financial statements and details of all transactions are now required. Make sure you’re collecting the information you need to keep your trust compliant.
Asset threshold lowering
Put aside time to review your asset expenditure. Identify any assets (valued up to $1,000) that you need and buy them before the end of the tax year.
Struggling to pay your tax? Please contact us or IRD directly.
Any business struggling to pay tax because of the impact caused by Covid-19 should log on to myIR to see if they can apply for an installment plan, for upcoming tax payments, defer tax payments or apply to have taxes written off due to financial hardship.
