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Planning for the year ahead beyond Covid
As most of us begin a new financial year (those with 31st March balance dates), we typically would also look to review our budgets or cashflow forecasts for the year ahead and set some new targets. We might even reset our strategic direction, and better yet, we would align our strategic direction and our cashflow forecast to ensure that the two are in unison.
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Understanding Ring-fencing of residential property losses
What does ring-fencing of rental losses mean? This means that investors are no longer able to offset residential property losses against their other income (for example, salary or wages, or business income), to reduce their overall tax liability. To the extent the residential rental deductions exceed the residential rental income, any residential rental tax losses will be carried forward and offset against residential property income in future years until they have been fully extinguished.
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Finance Lease vs Operating Lease
The current operating environment has created a number of challenges for many individuals and businesses. Whether you are still feeling the impacts of the COVID-19 pandemic or the cost-of-living crisis, cash is king, and your finances should be managed prudently. However, the reality of the situation has not restricted businesses from seeking opportunities to stand out and be innovative, nor has it prevented kiwis from looking at potential technology and vehicle upgrades. Whether to buy or rent, or cash up front or fund through a loan are typical questions facing many in these situations. Below explores these situations
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Entertainment and FBT
There may be confusion around understanding the rules for treating valid business entertainment expenses, whether these are deductible, and/or when they may be subject to Fringe Benefit Tax (“FBT”). The questions we get asked by clients are usually “How much can I claim?”, “What types of expenses are claimable?” and “Can I claim benefits for my employees”.
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The Dark side of the Moon … Part 2
Estate Planning can have more twists and turns than a bobsledders training run, but without knowing the course ahead, those on the ride are likely to fall off and get hurt. In the 2nd part of this series, we explore some of the head-scratchers in planning for a desired, fair and equitable distribution of assets to beneficiaries on the passing of a loved one. Be sure to revisit part one of this series if not done so already, which you can find at this same site, and deals with some of the operational matters upfront.