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  1. Post
    hi,

    on another note... i am interested to invest (buy and hold) in crypto currency via nz approved exchange coibase. do i still have to pay a yearly tax on it if the value increases? (despite no interest payments, no realization of capital gain)

  2. Post
    Gardener wrote:
    hello there

    i am interested to get more details on the FIF rule exemption for australian shares listed on ASX.

    i did find an old list of companies that are exempt: https://www.classic.ird.govt.nz/reso...ir871-2016.pdf

    however, i have a few questions remaining:

    1) what's the criteria for a company to be added/removed from the list?
    2) does 1) happen frequently?
    3) is there an ETF (exchange traded fund) that contains FIF exempt shares only?
    4) is the aud/nzd currency fluctuation also exempt if i owned an FIF exempt australian stock?
    5) essentially, i want to buy a broad basket of australian stocks and hold them forever. any tipps / infos on that pls?

    thank you for any help in advance.
    1) It is just the criteria laid down by the ASX for them to be listed.
    2) Yes -in that list you linked you can see quite a few Companies that were added and removed during the year.
    3) Probably, there are quite a few Australian ETFs.
    4) No, FIF exempt only means exempt from having to apply the FIF rules any income is still taxable under ordinary tax rules. It will depend on whether you are a cash basis person and whether held on capital or revenue account etc.
    5) There is the FIF de minimis. If the cost of your FIF holdings is under $50k in total then you don't have to apply the FIF rules. So you can hold some FIFs in your portfolio and not have to worry about them.
    Last edited by brand; 17th May 2019 at 5:41 pm.

  3. Post
    Gardener wrote:
    hi,

    on another note... i am interested to invest (buy and hold) in crypto currency via nz approved exchange coibase. do i still have to pay a yearly tax on it if the value increases? (despite no interest payments, no realization of capital gain)
    Based on recent IRD guidance crypto is taxable on realisation. However they also say realisation includes swapping from one form of crypto to another.

  4. Post
    Hi Brand,

    I have paid some RLWT at the time when my apartment was sold in 2018, but actually made some loss, wondering if the Loss can use against my salary when preparing my IR3? thanks.

  5. Post
    KateK wrote:
    Hi Brand,

    I have paid some RLWT at the time when my apartment was sold in 2018, but actually made some loss, wondering if the Loss can use against my salary when preparing my IR3? thanks.
    This is interesting. I assume this was a sale where the bright line rules applied? So this was an investment property or similar?

    Unfortunately losses under the bright line rules are "ring fenced" so they cannot be used to offset your salary.

    However you should be able to get the RLWT refunded by claiming it in your tax return.


    This is all relatively new for everyone involved so I suggest including extra detail to IRD as a letter/note with the return.
    Last edited by brand; 24th May 2019 at 10:48 am.

  6. Post
    brand wrote:
    This is interesting. I assume this was a sale where the bright line rules applied? So this was an investment property or similar?

    Unfortunately losses under the bright line rules are "ring fenced" so they cannot be used to offset your salary.

    However you should be able to get the RLWT refunded by claiming it in your tax return.


    This is all relatively new for everyone involved so I suggest including extra detail to IRD as a letter/note with the return.
    yep, it's caught by bright line test. thank you very much Brand.

  7. Post
    Is there any tax to gift money to a spouse/partner in NZ? For example, we have enough for a small term deposit in my account currently. However, the tax rate would be lower if she were to open the term deposit.

  8. Post
    PlatinuM195 wrote:
    Is there any tax to gift money to a spouse/partner in NZ? For example, we have enough for a small term deposit in my account currently. However, the tax rate would be lower if she were to open the term deposit.
    no.

    We did have a gift duty but was removed as the cost to administrate was more than tax being collected.

  9. Post
    Xero alternatives that are well used by accountants? Over Xero and its costs.. MYOB lol?

  10. Post
    I hope someone here can help with my question! We are a sports team who are fundraising for a trip to a tournament. Some sponsors have asked for an invoice. We are not GST registered or in fact registered with IRD in any way. Do we need to be? Or can we just issue an invoice to the sponsors in our teams name? Any tax or legal implications? The sponsorship money will all be spent on airfares/uniforms/accommodation etc. No profit. Thanks

  11. Post
    Work uses MYOB, has done for years, can't be too bad.

  12. Post
    loopy wrote:
    I hope someone here can help with my question! We are a sports team who are fundraising for a trip to a tournament. Some sponsors have asked for an invoice. We are not GST registered or in fact registered with IRD in any way. Do we need to be? Or can we just issue an invoice to the sponsors in our teams name? Any tax or legal implications? The sponsorship money will all be spent on airfares/uniforms/accommodation etc. No profit. Thanks
    If your income is over the GST threshold of $60k then your team does need to be GST registered. You might find this table helpful:

    https://www.ird.govt.nz/roles/non-pr...and-income-tax

    Honestly it is a bit shitty by IRD...

  13. Post
    Zalman wrote:
    Xero alternatives that are well used by accountants? Over Xero and its costs.. MYOB lol?
    If you don't need invoicing there are Xero cashbook versions for $12+GST/month (without GST function) or $21+GST/month (with GST function).

    Otherwise MYOB Essentials is the competitor to Xero however they are a long way behind and there are some really stupid issues.

    As an example of their (lack) of thinking in the beginning the software couldn't automatically split transactions 50-50 if the figure ended in an odd number of cents e.g. $0.33 because it didn't know what to do about the partial cent.

    That has been fixed now but similar problems remain where being a cent out can cause all kinds of headaches. I just found that out recently with the integrated payroll in Essentials.

  14. Post
    brand wrote:
    If you don't need invoicing there are Xero cashbook versions for $12+GST/month (without GST function) or $21+GST/month (with GST function).

    Otherwise MYOB Essentials is the competitor to Xero however they are a long way behind and there are some really stupid issues.

    As an example of their (lack) of thinking in the beginning the software couldn't automatically split transactions 50-50 if the figure ended in an odd number of cents e.g. $0.33 because it didn't know what to do about the partial cent.

    That has been fixed now but similar problems remain where being a cent out can cause all kinds of headaches. I just found that out recently with the integrated payroll in Essentials.
    Also MYOB are purposefully pricing themselves below Xero for now.
    Expect that to go up in the next year or so once they sort their shit out.

  15. Post
    Zalman wrote:
    Xero alternatives that are well used by accountants? Over Xero and its costs.. MYOB lol?
    Whats your gripe with Xero if you dont mind me asking ... not in any way affiliated with Xero but I am a Xero certified advisor.
    Might be something I or others here can fix.

  16. Post
    The problem with xero is its so expensive and woeful support. I use it for my practice but only because its free as a CA. I supposedly have a dedicated support manager who takes weeks to respond to queries. The templates are shit and not easy to customise. Anecdotally they have massive turnover of support staff in Brisbane. But as yet there are no better alternatives.

  17. Post
    The support issue is valid -I'm Xero certified but almost entirely self taught and am basically the Xero support for clients because the official support is so lackluster.

    The templates are OK. The reporting is pretty user friendly I have created reports from scratch far faster than I could have in AO/AE etc.

  18. Post
    brand wrote:
    The support issue is valid -I'm Xero certified but almost entirely self taught and am basically the Xero support for clients because the official support is so lackluster.

    The templates are OK. The reporting is pretty user friendly I have created reports from scratch far faster than I could have in AO/AE etc.
    The reporting templates are ok i meant the invoicing templates. Took a long time to get it looking the way I wanted.

  19. Post
    hoe_rag wrote:
    The reporting templates are ok i meant the invoicing templates. Took a long time to get it looking the way I wanted.
    You can just export the invoice templates using the Docx format and do what you want with them basically.
    Relys on having word skills a bit I suppose.

    Xero's new management report templates are pretty slick, especially if you want to have seperate P&L's for different costs centres etc.
    You can add in just about anything you want including custom formulas, ratios etc.
    Much more user friendly than the classic MYOB ledger ever was.

    So long as you dont mind getting your queries answered by email rather than picking up a phone, I think Xero's support is not too bad.
    Especially considering how woeful MYOB's customer support has gotten over the last few years.
    That used to be one of their biggest selling points for an accountant but now it's gone to shit.

  20. Post
    hi there -

    how does IRD determine whether local stocks are held in revenue account or capital account? are there any hard criteria like with property investments? or are there at least somewhat clear guidelines?

    thanks so much for your response in advance!

  21. Post
    I assume you are wondering about whether or not you have to pay tax on share gains which is quite a grey area.

    Essentially it boils down to what your intention was when purchasing the shares.

    1. If you were intending to gain profit from a capital gain then obviously you need to pay tax on that.

    2. If you were intending to profit from dividends, then you don't need to pay tax on the capital gain.

    If you are doing both, you probably want to make sure you have some way to prove they are separate holdings (eg create separate companies for each form of trading.

  22. Post
    labcat wrote:
    I assume you are wondering about whether or not you have to pay tax on share gains which is quite a grey area.

    Essentially it boils down to what your intention was when purchasing the shares.

    1. If you were intending to gain profit from a capital gain then obviously you need to pay tax on that.

    2. If you were intending to profit from dividends, then you don't need to pay tax on the capital gain.

    If you are doing both, you probably want to make sure you have some way to prove they are separate holdings (eg create separate companies for each form of trading.
    thanks. so seems very random without a guideline whether a share purchase was 1. or 2. and hence whether its capital gain should be taxed or not.

    thanks for your answer regardless.

  23. Post
    TatonkaBill wrote:
    Whats your gripe with Xero if you dont mind me asking ... not in any way affiliated with Xero but I am a Xero certified advisor.
    Might be something I or others here can fix.
    Thanks for the info brand TatonkaBill.

    My gripe is mostly cost. I send about 12 invoices a month, seems pretty costly for what I do. Their reports are also a little hard to figure out, but in saying that I have never had any training.

  24. Post
    Zalman wrote:
    Thanks for the info brand TatonkaBill.

    My gripe is mostly cost. I send about 12 invoices a month, seems pretty costly for what I do. Their reports are also a little hard to figure out, but in saying that I have never had any training.
    Ahh yeah .. you're kind of stuck with the standard Xero plan at your level.
    Xero does offer a GST cashbook at $21 + GST per mth if you go through an acountant, but you would lose the ability to create invoices in Xero and match them up automatically.
    Thats fine if you can use a invoice book or create your own invoices with word/excel or what have you.

    You could also try using MYOB essentials instead.
    Their plans currently are a bit cheaper than Xero ($40 plus GST per mth) but you dont get as many features with it.
    No Tracking of inventory/cost centres etc comes to mind.
    You'd have to go through a conversion process though which can cost you some $ if you cant do it yourself.

  25. Post
    Yeah if cost is the main concern there are the cashbook plans or the partner discounts (25% for Xero and 15% for MYOB) but you have to go through an accountant to get that pricing.